Is Aid The Capital Component Making Countries Efficient? A Non-Parametric Production Theory Approach

Assoc. Prof. Ann Veiderpass ()
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Assoc. Prof. Ann Veiderpass: School of Business, Economics and Law, University of Gothenburg

Journal of Global Analysis, 2011, vol. 2, issue 1, 27-47

Abstract: Cross country regressions on aid effectiveness have failed to provide substantial evidence on the effects of foreign aid. This study focuses on country performance in a production theory context. By means of the non-parametric DEA method, we study 60 individual low and middle income countries over a six year period. Is there a systematic correlation between resource intensity and country efficiency? We find indications of a positive relation between capital intensity and country efficiency. We then investigate whether aid is the conclusive part of capital providing this correlation, but when linking country efficiency development to aid such a pattern is not to be found.

Keywords: Production; Efficiency; Aid; Country Comparison. (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:csy:journl:v:2:y:2011:i:1:p:27-47

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