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Does foreign aid really raise per capita income?: a time series perspective

We analyze the relationship between per capita income and foreign aid. We employ annual data and five-year averages and carefully examine the time-series properties of the data. Panel estimations with dynamic feasible generalized least-squares (DFGLS) show that aid generally has an insignificant or...

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Bibliographic Details
Main Authors: Nowak-Lehmann D., Felicitas (Author) , Dreher, Axel (Author)
Other Authors: Herzer, Dierk (Other) , Klasen, Stephan (Other) , Martinez-Zarzoso, Immaculada (Other)
Format: Article (Journal)
Language:English
Published: 22 February 2012
In: The Canadian journal of economics
Year: 2012, Volume: 45, Issue: 1, Pages: 288-313
ISSN:1540-5982
DOI:10.1111/j.1540-5982.2011.01696.x
Online Access:Verlag, Volltext: http://dx.doi.org/10.1111/j.1540-5982.2011.01696.x
Verlag, Volltext: https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-5982.2011.01696.x
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Author Notes:Nowak‐Lehmann Felicitas, Dreher Axel, Herzer Dierk, Klasen Stephan, Martínez‐Zarzoso Inmaculada
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Summary:We analyze the relationship between per capita income and foreign aid. We employ annual data and five-year averages and carefully examine the time-series properties of the data. Panel estimations with dynamic feasible generalized least-squares (DFGLS) show that aid generally has an insignificant or minute negative significant impact on per capita income (particularly in highly aid-dependent countries). This holds true for countries with different levels of human development and income, as well as for different regions. We also find that aid has a small positive impact on investment, but a significant negative impact on domestic savings (crowding out) and the real exchange rate (appreciation).
Item Description:Gesehen am 19.04.2018
Physical Description:Online Resource
ISSN:1540-5982
DOI:10.1111/j.1540-5982.2011.01696.x

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