Artikel
Foreign aid, poverty and economic growth in developing countries: A dynamic panel data causality analysis
This article examines the causal relationship between foreign aid, poverty, and economic growth in 82 developing countries for the period 1981-2013. Taking advantage of the recently developed dynamic panel data estimation techniques, the paper tests for both panel unit roots and cointegration before employing the panel vector error-correction model (VECM) Granger causality test. The main findings are that in the short run, there is evidence of (a) a bidirectional causal relationship between economic growth and poverty; (b) a unidirectional causal relationship from economic growth to foreign aid; and (c) unidirectional causality from poverty to foreign aid. In the long-run, the study found that (a) foreign aid tends to converge to its long-run equilibrium path in response to changes in economic growth and poverty; and (b) both economic growth and poverty jointly Granger cause foreign aid.
- Language
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Englisch
- Bibliographic citation
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Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 7 ; Year: 2019 ; Issue: 1 ; Pages: 1-17 ; Abingdon: Taylor & Francis
- Classification
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Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Foreign Aid
Measurement and Analysis of Poverty
- Subject
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dynamic panel data analysis
economic growth
foreign aid
Granger causality
official development assistance (ODA)
poverty
vector error-correction model (VECM)
- Event
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Geistige Schöpfung
- (who)
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Mahembe, Edmore
Odhiambo, Nicholas M.
- Event
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Veröffentlichung
- (who)
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Taylor & Francis
- (where)
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Abingdon
- (when)
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2019
- DOI
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doi:10.1080/23322039.2019.1626321
- Handle
- Last update
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11.03.2025, 12:17 PM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Mahembe, Edmore
- Odhiambo, Nicholas M.
- Taylor & Francis
Time of origin
- 2019
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