IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Effect of Domestic Capital Formation and Foreign Assistance on Rate of Economic Growth

Listed author(s):
  • Potiowsky, Thomas


    (Portland State University Economics - Liberal Arts & Sciences)

  • Qayum, Abdul


    (Portland State University Economics - Liberal Arts & Sciences)

Registered author(s):

    It is universally recognized that income growth of a country is closely related to its rate of capital formation and foreign loans and assistance. This note attempts an empirical verification of this accepted fact based on a simple econometric study of the relationship between the rate of growth of per capita income of 58 developing countries and the per capita gross fixed capital formation and the per capita development assistance from developed countries. The results show that the effect of capital formation is not as great as is generally believed. Marginal output capital ratio is about 16 percent. The more surprising result is that forcing assistance has very small effect on per capita income. The paper lists several plausible explanation for this negligible effect of foreign assistance.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by Camera di Commercio Industria Artigianato Agricoltura di Genova in its journal Economia Internazionale / International Economics.

    Volume (Year): 45 (1992)
    Issue (Month): 2 ()
    Pages: 223-228

    in new window

    Handle: RePEc:ris:ecoint:0462
    Contact details of provider: Postal:
    Via Garibaldi 4, 16124 Genova, Italy

    Phone: +39 010 27041
    Fax: +39 010 2704222
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ris:ecoint:0462. 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: (Angela Procopio)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.