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

Azeta Cungu and Johan Swinnen

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: 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.

Keywords: economic transition; empirical study; foreign aid; growth; reform. (search for similar items in EconPapers)
JEL-codes: C23 F35 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2003
New Economics Papers: this item is included in nep-cna and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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http://www.econ.kuleuven.be/licos/publications/dp/dp128.pdf

Related works:
Working Paper: THE IMPACT OF AID ON ECONOMIC GROWTH IN TRANSITION ECONOMIES: AN EMPIRICAL STUDY (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:12803

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