Effect of Domestic Capital Formation and Foreign Assistance on Rate of Economic Growth
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
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.
Volume (Year): 45 (1992)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Phone: +39 010 27041
Fax: +39 010 2704222
Web page: http://www.ge.camcom.it/IT/Tool/Modulistica
More information through EDIRC
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 references are entirely missing, you can add them using this form.