18,385
Views
5
CrossRef citations to date
0
Altmetric
DEVELOPMENT ECONOMICS

The relationship between aid and economic growth of developing countries: Does institutional quality and economic freedom matter?

Article: 2062092 | Received 02 Nov 2021, Accepted 30 Mar 2022, Published online: 16 Apr 2022

References

  • Aboubacar, B., Xu, D., & Ousseini, A. M. (2015). Foreign Aid ’ s effect on economic growth, new results from WAEMU ’ s countries. Theoretical Economics Letters, 5(3), 425–20. http://dx.doi.org/10.4236/tel.2015.53049
  • Adamu, P. A. (2013). The impact of foreign aid on economic growth in ECOWAS countries: A simultaneous-equation model. UNU World Institute for Development Economics Research (UNU-WIDER), 1–25. WIDER Working Paper No. 2013/143. Available at: https://www.wider.unu.edu/sites/default/files/WP2013-143.pdf
  • Adaramola, O. A., & Dada, O. (2020). impact of inflation on economic growth: Evidence from Nigeria. Investment Management and Financial Innovation, 17(2), 1–13. http://dx.doi.org/10.21511/imfi.17(2).2020.01
  • Adusei, E. (2020). The impact of foreign aid on economic growth in Sub-Sahara Africa: The mediating role of institutions Munich Personal RePEc Archive, Paper No. (104561), University Library of Munich, Germany. online at: https://mpra.ub.uni-muenchen.de/104561
  • Aghoutane, K., & Karim, M. (2017). The impact of foreign aid on economic growth in Morocco: Econometric analysis using VECM. International Journal of Economics and Finance, 9(5), 87. https://doi.org/10.5539/ijef.v9n5p87
  • Al Gifari, H. (2015). The effects of government expenditure on economic growth : The case of Malaysia. Munich Personal RePEc Archive, MPRA Paper 104561, University Library of Munich, Germany. Online at: https://mpra.ub.uni-muenchen.de/71254/.
  • Ali, A. M., & Isse, H. S. (2005). An empirical analysis of the effect of aid on growth. International Advances in Economic Research, 11(1), 1–11. https://doi.org/10.1007/s11294-I'm-7177-6
  • Amusa, K., & Oyinlola, M. A. (2019). The effectiveness of government expenditure on economic growth in Botswana. African Journal of Economic and Management Studies, 10(3), 368–384. https://doi.org/10.1108/AJEMS-03-2018-0081
  • Arellano, M., & Bond, S. (1991). Some test of specification for panel data: Monte Carlo evidence and an applicaion to employment equations. The Review of Economic Studies, 58(2), 277–297. https://doi.org/10.2307/2297968
  • Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51. https://doi.org/10.1016/0304-4076(94)01642-D
  • Armah, S. (2010). Does political stability improve the aid-growth relationship? A panel evidence on selected Sub-Saharan African countries. African Review of Economics and Finance, 2(1), 54–76. file:///C:/Users/user/Downloads/Does_political_stability_improve_the_aid.pdf
  • Asafo, S. S. (2019). External debt and economic growth: Two-Step system GMM evidence for Sub-Saharan Africa countries. International Journal of Business, Economics and Management, 6(1), 39–48. https://doi.org/10.18488/journal.62.2019.61.39.48
  • Bekere, B., & Bersisa, M. (2018). Impact of foreign direct investment on economic growth in Eastern Africa. Determinants of Economic Growth in Africa, 95–124. https://doi.org/10.1007/978-3-319-76493-1_4
  • Bhandari, R., Pradhan, G., Dhakal, D., & Upadhyaya, K. (2007). Foreign aid, FDI and economic growth in east European countries. Economics Bulletin, 6(13), 1–9. file:///C:/Users/user/Downloads/Foreign_Aid_FDI_and_Economic_Growth_in_E.pdf
  • Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Economomerics, 87(1), 115–143. https://doi.org/10.1016/S0304-4076(98)00009-8
  • Borrego, A., & Arellano, M. C. (1999). Symmetrically normalized instrumental-variable estimation using panel data. Journal of Business & Economic Statistics, 17(1), 36–49. https://www.tandfonline.com/doi/pdf/10.1080/07350015.1999.10524795?needAccess=true
  • Burnside, C., & Dollar, D. (2000). Aid, policies, and growth. The American Economic Review, 9(4), 847–868. https://doi.org/10.1257/aer.90.4.847
  • Chenery, H. B., & Strout, A. M. (1966). Foreign assistance and economic development. American Economic Review, 7(7), 679–733. https://www.jstor.org/stable/1813524
  • Clemens, M. A., Radelet, S., Bhavnani, R. R., & Bazzi, S. (2012). Counting chickens when they hatch: Timing and the effects of aid on growth. The Economic Journal, 122(561), 590–617. https://doi.org/10.1111/j.1468-0297.2011.02482.x
  • Domar, E. (1946). ‘Capital expansion, rate of growth, and employment author (s): Evsey D. Domar published by. The Econometric Society, 14(2), 137–147. Stable URL . http://www.jstor.org/stable/1905364
  • Dreher, A., Fuchs, A., Parks, P., Strange, A., & Tierney, M. J. (2021). Aid, China, and growth: Evidence from a new global development finance dataset. American Economic Journal: Economic Policy, 13(2), 135–174. https://doi.org/10.1257/pol.20180631
  • Edward, P., & Tumwebaze, K. H. (2020). Effects of foreign aid inflow on economic growth of Uganda: Autoregressive distributed lag modelling (ARDL). International Journal of Sustainability Management and Information Technologies, 6(2), 36. https://doi.org/10.11648/j.ijsmit.20200602.11
  • Fasanya, I. O., & Onakoya, A. B. O. (2012). Does foreign aid accelerate economic growth? An empirical analysis for Nigeria. International Journal of Economics and Financial Issues, 2(4), 423–431. https://ideas.repec.org/a/eco/journ1/2012-04-5.html
  • Fashina, O. A., Asaleye, A. J., Ogunjobi, J. O., & Lawal, A. I. (2018). Foreign aid, human capital and economic growth nexus: Evidence from Nigeria. Journal of International Studies, 11(2), 104–117. https://doi.org/10.14254/2071-8330.2018/11-2/8
  • Ferreira, I. A. R., & Simões, M. C. N. (2013). Aid and growth: A comparative study between Sub-Saharan Africa and Asia. Applied Econometrics and International Development, 13(1), 113–132. https://ideas.repec.org/a/eaa/aeinde/v13y2013i1_10.html
  • Fiodendji, D. K., & Evlo, K. (2013). Threshold effects in the foreign aid-economic growth relationship: The role of institutional quality and macroeconomic policy environment. Modern Economy, 4(11), 681–695. https://doi.org/10.4236/me.2013.411074
  • Galiani, S., & Knack, S. (2016). The effect of aid on growth: Evidence from a Quasi-experiment. Journal of Economic Growth, 22(1), 1–33. https://doi.org/10.1007/s10887-016-9137-4
  • Gyimah-Brempong, K., Racine, J. S., & Gyapong, A. (2012). Aid and economic growth: Sensitivity analysis. Journal of International Development, 24(1), 17–33. https://doi.org/10.1002/jid.1708
  • Hansen, B. E. (1999). Threshold effects in non-dynamic panels: Estimation, testing, and inference. Journal of Econometrics, 93(2), 345–368. https://doi.org/10.1016/S0304-4076(99)00025-1
  • Harrod, R. (1939). An Essay in Dynamic Theory. Economic Journal, 49, 14–33. http://dx.doi.org/10.2307/2225181
  • Harrod, R. F. (1939). An essay in dynamic theory. Economic Journal, 49(193), 14–33. https://doi.org/10.2307/2225181
  • Hayat, A. (2019). Foreign direct investments, institutional quality, and economic growth. Journal of International Trade and Economic Development, 28(5), 561–579. https://doi.org/10.1080/09638199.2018.1564064
  • Hussen, M. S., & Lee, K. W. (2012). The Impact of Foreign Aid on Economic Growth in Ethiopia. Asian International Studies Review, 13(2), 87–112. https://doi.org/10.16934/isr.13.2.201212.87
  • Jalloh, M. (2013). Natural resources endowment and economic growth: The West African experience. Journal of Natural Resources and Development, 2013(3), 66–84. https://doi.org/10.5027/jnrd.v3i0.06
  • Juselius, K., Møller, N. F., & Tarp, F. (2014). The long-run impact of foreign aid in 36 African countries: Insights from multivariate time series analysis. Oxford Bulletin of Economics and Statistics, 76(2), 0305–9049. https://doi.org/10.1111/obes.12012 2
  • Karras, G. (2006). Foreign aid and long-run economic growth: Empirical evidence for a panel of developing countries. Journal of International Development, 18(1), 15–28. https://doi.org/10.1002/jid.1187
  • Kirikkaleli, D., Adeshola, I., Adebayo, T., Sunday, A., & Abraham, A. (2021). Do foreign aid triggers economic growth in Chad? A time series analysis. Future Business Journal, 7(1), 1–17. https://doi.org/10.1186/s43093-021-00063-y
  • Kremer, S., Bick, A., & Nautz, D. (2013). Inflation and growth: New evidence from a dynamic panel threshold analysis. Empirical Economics, 44(2), 861–878. https://doi.org/10.1007/s00181-012-0553-9
  • Kwakye, J. K. (2010). Overcoming Africas addiction to foreign aid: A look at some financial engineering to mobile other resources. The Institute of Economic Affairs.
  • Lee, J., & Alemu, A. M. (2015). F oreign aid on economic growth in Africa: A comparison of low and middle-income countries. Journal of Economics and Sustainable Development, 3(4), 449–462. https://doi.org/10.17159/2222-3436/2015/v18n4a
  • Mallik, G. (2008). Foreign aid and economic growth: A cointegration analysis of the six poorest African countries. Economic Analysis and Policy, 38(2), 251–260. https://doi.org/10.1016/S0313-5926(08)50020-8
  • Mbah, S., & Amassoma, D. (2014). The linkage between foreign aid and economic growth in Nigeria. International Journal of Economic Practices and Theories, 4(6), 1007–1017. https://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.674.5085
  • McArtur, J., & Werker, E. (2016). Developing countries and international organizations: Introduction to the special issue. Review of International Organizations, 11(2), 155–169. https://doi.org/10.1007/s11558-016-9251-2
  • Moolio, P., & Kong, S. (2016). Foreign aid and economic growth: Panel cointegration analysis for Cambodia, Lao PDR, Myanmar, and Vietnam. Athens Journal of Business & Economics, 2(4), 417–428. https://doi.org/10.30958/ajbe.2.4.6
  • Mulwa, R., & Mariara, J. (2016). Natural resource curse in Africa: Dutch disease and institutional explanations. AGRODEP Working Paper 0029. http://www.agrodep.org/sites/default/files/AGRODEPWP0029.pdf
  • Rajemison, H., Rakotomanana, F., Randriankolona, P. L., & Ravelosoa, J. R. (2014). The Impacts of Socio-Political Crises in 2002 and 2009 On the Labour Market in Madagascar. INSTAT Direction des Statistiques des Ménages.
  • Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. Stata Journal, 9(1), 86–136. https://journals.sagepub.com/doi/pdf/10.1177/1536867X0900900106
  • Sala, H., & Trivín, P. (2014). Openness, investment and growth in Sub Saharan Africa. Journal of African Economies, 23(2), 257–289. https://doi.org/10.1093/jae/ejt027
  • Seo, M. H., & Shin, Y. (2016). Dynamic panels with threshold effect and endogeneity. Journal of Econometrics, 195(2), 169–186. https://doi.org/10.1016/j.jeconom.2016.03.005
  • Sothan, S. (2018). Foreign aid and economic growth: Evidence from Cambodia. Journal of International Trade and Economic Development, 27(2), 168–183. https://doi.org/10.1080/09638199.2017.1349167
  • Tadesse, T. (2011). Foreign aid and economic growth in Ethiopia: A cointegration analysis. Economic Research Guardian, 1(2), 88–108. https://www.ecrg.ro/files/p2011.1(2)3b4.pdf
  • Tang, K.-B., & Bundhoo, D. (2017). Foreign aid and economic growth in developing countries: Evidence from Sub-Saharan Africa. Theoretical Economics Letters, 7(5), 1473–1491. https://doi.org/10.4236/tel.2017.75099
  • Tiwari, A. K. (2011). Foreign aid, FDI, economic freedom and economic growth in Asian countries foreign aid, FDI, economic freedom and economic growth in Asian countries Aviral Kumar Tiwari*. Global Economy Journal, 11(March), 1–26. https://doi.org/10.2202/1524-5861.1705
  • Uddin, M. (2014). Effect of public investment on economic growth in Bangladesh: An econometric analysis. Journal of Economics and Sustainable Development, 5(22), 37–51. https://www.academia.edu/19016067/
  • Udvari, B., & Ampah, I. K. (2018). Impacts of aid for innovation on economic growth in the Sub-Saharan African countries. Mediterranean Journal of Social Sciences, 9(4), 99–108. https://doi.org/10.2478/mjss-2018-0119
  • Van Bon, N. (2019). Institutional quality and the public investment-growth relationship in Vietnam. Theoretical Economics Letters, 09(4), 691–708. https://doi.org/10.4236/tel.2019.94046
  • Villanger, E. (2007, May). Arab foreign aid: Disbursement patterns, aid policies and motives, 34(2), 223–256. https://doi.org/10.1080/08039410.2007.9666378
  • Wooldridge, J. M. (2001). Applications of generalized method of moments estimation. Journal of Economic Perspectives, 15(4), 87–100. https://doi.org/10.1257/jep.15.4.87
  • World Bank. (2011). Mongolia Quarterly Economic Update - August 2011. https://www.worldbank.org/en/news/feature/2011/08/24/mongolia-quarterly-economic-update-august-2011
  • Yahyaoui, I., & Bouchoucha, N. (2020). Foreign aid-growth Nexus in Africa: Do institutions matter? Journal of the Knowledge Economy, 11(4), 1663–1689. https://doi.org/10.1007/s13132-020-00638-0
  • Yiew, T. H., & Lau, E. (2018). Does foreign aid contribute to or impeded economic growth? Journal of International Studies, 11(3), 21–30. https://www.jois.eu/files/2_493_Yiew_Lau.pdf
  • Zekarias, S. M. (2016). The impact of foreign direct investment (FDI) on economic growth in Eastern Africa: Evidence from panel data analysis. Applied Economics and Finance, 3(1), 145–160. https://doi.org/10.11114/aef.v3i1.1317