Inter Country Analysis of the Effects of Official Development Assistance in Developing Countries on Economic Growth
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.
School Location:USA - Ohio
Source Type:Master's Thesis
Keywords:foreign aid economic growth
Date of Publication:01/01/2003