The Impact of Foreign Aid on Economic Growth in Developing Countries
- 발행기관 서강대학교 국제대학원
- 지도교수 허윤
- 발행년도 2006
- 학위수여년월 200608
- 학위명 석사
- 학과 및 전공 국제대학원
- 식별자(기타) 000000103095
- 본문언어 영어
초록/요약
The goal of this study is to investigate and determine the impact of foreign aid on economic growth in developing countries. Thus, guided by aid-effectiveness literature, it examines the effects of Official Development Assistance (ODA) on economic growth in developing countries embodying good policies, including those policies directing monetary, fiscal, and trade matters. This study examines the relationships among foreign aid, economic policies, and growth of per capita Gross Domestic Product (GDP). The empirical model is estimated by Feasible Generalized Least Squares (FGLS) using panel data from 63 developing countries for the period 1979 to 2000. The empirical results of this study indicate that coefficients of both investment and aid interacted with policy are statistically significant. Therefore, the direct effects of investment on growth and aid, with a policy on growth present, are significant. It also shows the coefficient of an aid variable is significant but the coefficient of an aid and policy interaction term is even more significant. Not aid by itself, but aid interacted with policy has the greatest positive effect on growth: aid interacted with policy has, thus, a more statistically significant effect on economic growth than aid alone. This study, then, finds that aid has a positive effect on economic growth when a sound policy environment, in fiscal, monetary, and trade domains, is in place.
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