Inter Country Analysis of the Effects of Official Development Assistance in Developing Countries on Economic Growth

by Krasnogolov, Vitaliya O

Abstract (Summary)
The thesis investigates the impact of foreign aid on economic growth in developing economies. Although the question of foreign aid is an old one, it has a special significance in current research in the light of fundamental institutional changes in the recipient countries. In particular, the author tests the hypothesis, which prevails in studies on the effectiveness of foreign aid in developing countries, that the impact of foreign aid is not significant. Cross-sectional time-series analysis of growth performance of a subset of 29 developing countries is used to determine the possible effect of aid on economic growth. The developed model together with aid-to-GDP ratio variable includes growth determinants such as school enrolment, government consumption, Misery index, and world GDP growth rate to account for business cycle. The results of the study indicate that no consistent link exists between aid and growth in a typical developing economy.
Bibliographical Information:


School:Ohio University

School Location:USA - Ohio

Source Type:Master's Thesis

Keywords:foreign aid economic growth


Date of Publication:01/01/2003

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