The Aid, Macroeconomic Policy Environment and Growth Nexus: Evidence from Selected Asian Countries

Autor: Hafiz Khalil Ahmad, Saima Liaqat, Mohammad Alauddin, Temesgen Kifle
Rok vydání: 2019
Předmět:
Zdroj: THE LAHORE JOURNAL OF ECONOMICS. 24:83-102
ISSN: 1811-5446
DOI: 10.35536/lje.2019.v24.i1.a4
Popis: This study empirically investigates the aid effectiveness debate in light of the Burnside-Dollar (2000) hypothesis that the recipient country’s policy environment is critical for aid effectiveness. Based on data from ten Asian countries for 1984–2015 and in line with Burnside and Dollar (2000), we construct a new composite policy index. Employing two-stage least squares to estimate the model, we find that aid had a negative impact on economic growth during the study period for these countries, thus refuting the Burnside-Dollar aid effectiveness hypothesis.
Databáze: OpenAIRE