IDEAS home Printed from
   My bibliography  Save this article

Governance and Foreign Aid in ASIAN Countries


  • Aviral Kumar Tiwari

    () (ICFAI University, Tripura)

  • Mamoni Kalita

    () (ICFAI, University, Tripura)


This paper examines the determinants of flow of foreign aid in the 20 ASIAN countries in a panel framework. The model includes the foreign aid, foreign direct investment, six measures of governance, along with the purely economic variables which have been taken as control variables. Estimation analysis was carried out by using pooled annual time series data from 2002 to 2008 in the framework of fixed and random effect model. Relevance of GMM (1991) and GMM (1998) estimates were also evaluated. We find that there is strong evidence of significantly positive impact of past year's aid flow and regulatory quality on the current year's aid flow while significantly negative impact of exports of goods and services, political stability and control over corruption on the current year's aid flow, weak evidence of the negative impact of population, voice and accountability, and rule of law on the current year's aid flow and weak evidence of significantly positive impact of government effectiveness on the current year's aid flow.

Suggested Citation

  • Aviral Kumar Tiwari & Mamoni Kalita, 2011. "Governance and Foreign Aid in ASIAN Countries," Economics Bulletin, AccessEcon, vol. 31(1), pages 453-465.
  • Handle: RePEc:ebl:ecbull:eb-10-00724

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Gould, David M. & Gruben, William C., 1996. "The role of intellectual property rights in economic growth," Journal of Development Economics, Elsevier, vol. 48(2), pages 323-350, March.
    2. Cebula, Richard J., 1995. "The impact of federal government budget deficits on economic growth in the united states: an empirical investigation, 1955-1992," International Review of Economics & Finance, Elsevier, vol. 4(3), pages 245-252.
    3. Anderson, James E. & Marcouiller, S.J. Douglas, 1997. "Trade and Security, I: Anarchy," Working Paper Series 477, Research Institute of Industrial Economics.
    4. Azmat Gani, 2009. "Governance and foreign aid in Pacific Island countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(1), pages 112-125.
    5. Aviral Kumar Tiwari, 2010. "Corporate governance and economic growth," Economics Bulletin, AccessEcon, vol. 30(4), pages 2825-2841.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Aviral Kumar Tiwari, 2011. "Tourism, Exports and FDI as a Means of Growth: Evidence from four Asian Countries," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(40), pages 131-151, June.
    2. Vikas Gautam & Suresh K G & Aviral Kumar Tiwari, 2013. "Impact Of Real Exchange Rates On Exports Of Agricultural Commodities: Evidence From India," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 11, pages 46-58, June.
    3. Noor-e-Saher, 2011. "Impact of Oil Prices on Economic Growth and Exports Earning: In the Case of Pakistan and India," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(40), pages 117-151, June.

    More about this item


    Foreign Aid; Governance; Panel Data; Generalized Method of Moments;

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • G3 - Financial Economics - - Corporate Finance and Governance


    This item is featured on the following reading lists or Wikipedia pages:
    1. User talk:Aviralkumartiwari in Wikipedia English ne '')


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-10-00724. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.