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Another look at the evidence on foreign aid led economic growth

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  • Judith Giles

Abstract

We apply recent time series techniques to Mbaku's Cameroon data to investigate the effects of foreign aid on economic growth. In contrast to Mbaku, we find some evidence to support the foreign aid led growth hypotheses in Cameroon. Our results illustrate the importance of testing hypotheses in an appropriate time series framework and the difficulties of time-series modelling with an insufficient span of data.

Suggested Citation

  • Judith Giles, 1994. "Another look at the evidence on foreign aid led economic growth," Applied Economics Letters, Taylor & Francis Journals, vol. 1(11), pages 194-199.
  • Handle: RePEc:taf:apeclt:v:1:y:1994:i:11:p:194-199
    DOI: 10.1080/135048594357862
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    References listed on IDEAS

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    1. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, Decembrie.
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    1. Asteriou, Dimitrios, 2009. "Foreign aid and economic growth: New evidence from a panel data approach for five South Asian countries," Journal of Policy Modeling, Elsevier, vol. 31(1), pages 155-161.
    2. David Giles, 1997. "Causality between the measured and underground economies in New Zealand," Applied Economics Letters, Taylor & Francis Journals, vol. 4(1), pages 63-67.
    3. Menard, Audrey-Rose & Weill, Laurent, 2016. "Understanding the link between aid and corruption: A causality analysis," Economic Systems, Elsevier, vol. 40(2), pages 260-272.
    4. Bassam Abou al Foul, 2008. "Foreign Aid and Economic Growth in Egypt and Jordan: An Empirical Analysis," Working Papers 418, Economic Research Forum, revised 06 Jan 2008.
    5. Kevin Sylwester, 2008. "Foreign Aid and Urbanization in Developing Countries," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 7(2), pages 153-166, August.
    6. Themba G. Chirwa & Nicholas M. Odhiambo, 2019. "The nexus between key macroeconomic determinants and economic growth in Zambia: a dynamic multivariate Granger causality linkage," Empirical Economics, Springer, vol. 57(1), pages 301-327, July.
    7. Chor Foon Tang & Hooi Hooi Lean, 2009. "The Effects Of Disaggregated Savings On Economic Growth In Malaysia - Generalised Variance Decomposition Analysis," Development Research Unit Working Paper Series 04-09, Monash University, Department of Economics.
    8. David Giles, 1997. "The hidden economy and tax-evasion prosecutions in New Zealand," Applied Economics Letters, Taylor & Francis Journals, vol. 4(5), pages 281-285.

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