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The Role of Foreign Aid and Foreign Direct Investment in Reducing Poverty

El Koudouss El Mechry and Evert Van der Sluis

No 206193, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: We examine the role of foreign aid and foreign direct investment (FDI) in reducing poverty in less developed countries (LDCs). Using panel data, our analyses suggest the effectiveness of foreign aid in reducing poverty depends on the measure of aid, the type of data analyzed, and the method of analysis employed. Overall, our findings suggest that FDI is largely ineffective in reducing poverty, and that U.S. agricultural aid has a small but significantly negative effect on reducing poverty in LDCs.

Keywords: Food Security and Poverty; International Development; Political Economy (search for similar items in EconPapers)
Pages: 1
Date: 2015-06-05
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:206193

DOI: 10.22004/ag.econ.206193

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