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Foreign Aid and Productivity in Thailand

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  • Hiroaki Sakurai

Abstract

This study examines the relationship between foreign aid and total factor productivity (TFP) in Thailand from 1972 to 2013 using the VAR model and Granger causality. While discussing the role of foreign aid in the economy of recipient countries, it is important to examine whether foreign aid contributes to the productivity of the recipient country. Estimation results do not show any evidence of a relationship between foreign aid and the TFP in Thailand, indicating that foreign aid does not necessarily directly affect productivity. This result is also considered to be suitable for previous studies.

Suggested Citation

  • Hiroaki Sakurai, 2023. "Foreign Aid and Productivity in Thailand," Bulletin of Applied Economics, Risk Market Journals, vol. 10(1), pages 145-155.
    • Handle: RePEc:rmk:rmkbae:v:10:y:2023:i:1:p:145-155
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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