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Aid, Policy, and Growth: The Case of Nepal

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  • Kishor Sharma
  • Badri Bhattarai

Abstract

The debate over aid effectiveness has produced a large number of cross-sectional studies, while case studies of individual countries remain extremely limited, probably due to the lack of disaggregated data. This paper contributes to aid-, policy-, and growth literature using data from Nepal, a country that has been one of the highest recipients of aid in the developing world. Our findings suggest that aid, in the presence of sound economic policy, contributes to growth. However, we did not find any statistical evidence to suggest that democratic governance and openness impact the effectiveness of aid in Nepal.

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  • Kishor Sharma & Badri Bhattarai, 2013. "Aid, Policy, and Growth: The Case of Nepal," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(4), pages 895-910.
    • Handle: RePEc:mes:jeciss:v:47:y:2013:i:4:p:895-910
    DOI: 10.2753/JEI0021-3624470405
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    Cited by:

    1. Jing Shao & Maojun Wang, 2022. "Revisiting economic effectiveness of foreign aid: The case of Japanese aid to China," The World Economy, Wiley Blackwell, vol. 45(7), pages 2284-2304, July.
    2. Md Ismail Hossain & Md Istiak Hossain & Mollah Aminul Islam & Md Reza Sultanuzzaman, 2022. "Does Foreign Aid Have an Expected Role in the Economic Growth of Bangladesh? An Analysis in ARDL Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 12(6), pages 113-126, November.
    3. Yahyaoui, Ismahen & Bouchoucha, Najeh, 2019. "The Long-run relationship between ODA, growth and governance: An application of FMOLS and DOLS Approachs," MPRA Paper 95938, University Library of Munich, Germany.
    4. Srofenyoh, Francis Yao & Agyei-Henaku, Kofi Aaron Aboa-Offei & Badu-Prah, Charlotte & Agyeiwaa-Afrane, Akua & Gidiglo, Ferguson Korbla & Djokoto, Justice Gameli, 2023. "Aid-to-Production, Consumption and Agricultural Growth in Developing Countries," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 11(4), October.

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