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Is there a long-run relationship between ODA and GDP? The case of India


  • P. J. Dawson
  • Richard Tiffin


The existence of a long-run relationship between ODA and per capita GDP in India is examined, using annual data for 1961-92. A necessary condition for such a relationship is that the two series are integrated of the same order. Unit root tests indicate that ODA is I (0) while GDP is I (1), hence no long-run relationship exists. Thus, at the macroeconomic level, aid neither stimulates economic development nor detracts from it. A corollary is that aid is not responsive to changes in India's income.

Suggested Citation

  • P. J. Dawson & Richard Tiffin, 1999. "Is there a long-run relationship between ODA and GDP? The case of India," Applied Economics Letters, Taylor & Francis Journals, vol. 6(5), pages 275-277.
  • Handle: RePEc:taf:apeclt:v:6:y:1999:i:5:p:275-277
    DOI: 10.1080/135048599353212

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