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Foreign Aid and Economic Growth: An Empirical Analysis
Author(s) -
Bowen Janine
Publication year - 1995
Publication title -
geographical analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 65
eISSN - 1538-4632
pISSN - 0016-7363
DOI - 10.1111/j.1538-4632.1995.tb00908.x
Subject(s) - economics , aid effectiveness , economic expansion , development economics , macroeconomics , developing country , economic growth
After more than forty years of foreign aid programs and numerous studies of the impact aid has had on economic growth in recipient countries, the strength and nature of the aid‐growth relationship is still unknown. This study contends that results from previous studies have in aggregate been inconclusive largely because of methodological limitations and that a significant aid‐growth relationship does exist. Further, the nature of the relationship (for example, positive or negative) varies across the level of economic development in aid‐receiving countries. The expansion method is used here to expand initial models of economic growth into models which better explain the aid‐growth relationship by incorporating the relationships that aid may have with other determinants of economic growth.