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Global Financial Crisis And Foreign Development Assistance Shocks In Least Developing Countries

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  • DEBASISH KUMAR DAS

    (University of Warwick)

  • CHAMPA BATI DUTTA

    (University of Warwick)

Abstract

This paper evaluates whether the exogenous component of the global financial crisis affects OECD-DAC EU donor countries ODA disbursements to the LDCs and how it impacts on LDCs economic prosperity. Using both static and dynamic panel techniques, we find that global financial crisis in OECD-EU donor countries are causes for the significant downside of ODA flows to the LDCs. Consequently it adversely affects through the various transmission channels (e.g., ODA disbursements, remittances, bilateral financial flows, export growth) to the LDCs economic growth. Our results also explore that due to countercyclical role of ODA flows from the donors¡¯ largely affect to the LDCs economic development process negatively. The robustness checks using alternative estimation technique supports our original estimation results in every context.

Suggested Citation

  • Debasish Kumar Das & Champa Bati Dutta, 2013. "Global Financial Crisis And Foreign Development Assistance Shocks In Least Developing Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(2), pages 1-41, June.
    • Handle: RePEc:jed:journl:v:38:y:2013:i:2:p:1-41
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    3. Uchenna R. Efobi & Matthias Nnadi, 2015. "How Does Foreign Aid Affect the Relationship between IFRS Adoption and Foreign Direct Investment?," Research Africa Network Working Papers 15/014, Research Africa Network (RAN).

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    More about this item

    Keywords

    Financial Crisis; ODA; Economic Growth; OECD-EU Donors; LDCs;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F39 - International Economics - - International Finance - - - Other
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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