Comment on Lof, Mekasha, and Tarp (2014)
In Nowak-Lehmann et al. (2012), we used time-series methods to investigate the impact of aid on per capita GDP. Lof, Mekasha, and Tarp (LMT, 2014) criticize our econometric approach, our interpretation, and our data-handling procedure which lead to a large share of missing observations in some speci...
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| Main Authors: | , , , , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
2015
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| In: |
World development
Year: 2014, Volume: 70, Pages: 389-396 |
| ISSN: | 1873-5991 |
| DOI: | 10.1016/j.worlddev.2014.06.012 |
| Online Access: | Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.worlddev.2014.06.012 Verlag, lizenzpflichtig, Volltext: http://www.sciencedirect.com/science/article/pii/S0305750X14001715 
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| Author Notes: | Dierk Herzer, Felicitas Nowak-Lehmann, Axel Dreher, Stephan Klasen, Inmaculada Martinez-Zarzoso |
| Summary: | In Nowak-Lehmann et al. (2012), we used time-series methods to investigate the impact of aid on per capita GDP. Lof, Mekasha, and Tarp (LMT, 2014) criticize our econometric approach, our interpretation, and our data-handling procedure which lead to a large share of missing observations in some specifications. Using a different time-series approach, a different aid variable, and a different sample, they claim to find a positive effect of aid on income, which contrasts with our own results. In this comment, we first explain why we disagree with LMT’s critique of our econometric method and show that our results do not depend on our way of dealing with missing data. Second, we show that the methods used by LMT are unsuitable and rely on similarly problematic data-handling procedures. Supplementing their approach with appropriate cointegration and causality tests shows that there is no robust effect of aid on income. |
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| Item Description: | Available online 14 July 2014 Gesehen am 14.09.2020 |
| Physical Description: | Online Resource |
| ISSN: | 1873-5991 |
| DOI: | 10.1016/j.worlddev.2014.06.012 |