The Impact of Aid on Economic Growth in Transition Economies: An Empirical Study

Arbeitspapier

This paper assesses econometrically the contribution of aid to output growth in a panel of twenty transition countries over nine years (1989-1997). The study finds a positive and statistically significant relationship between foreign aid and growth. A second result is that the positive effect of aid seems to be stronger when associated with economic liberalisation. The above findings are important, particularly in light of recent scepticism on the role of aid on developing country economic growth and the recent declining trend in aid commitments from industrialized countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: LICOS Discussion Paper ; No. 128

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Foreign Aid
• Subject: economic transition ; empirical study ; foreign aid ; growth ; reform. ; Wirtschaftswachstum ; Internationale Wirtschaftshilfe ; Übergangswirtschaft ; Osteuropa ; GUS-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cungu, Azeta ; Swinnen, Johan
• Event: Veröffentlichung
• (who): Katholieke Universiteit Leuven, LICOS Centre for Transition Economics
• (where): Leuven
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/74858
• Last update: 10.03.2025, 11:45 AM CET