GLOBAL FINANCIAL CRISIS AND FOREIGN DEVELOPMENT ASSISTANCE SHOCKS IN LEAST DEVELOPING COUNTRIES

Debasish Das () and Champa Bati Dutta
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Champa Bati Dutta: University of Warwick

Journal of Economic Development, 2013, vol. 38, issue 2, 1-41

Abstract: This paper evaluates whether the exogenous component of the global financial crisis affects OECD-DAC EU donor countries ODA disbursements to the LDCs and how it impacts on LDCs economic prosperity. Using both static and dynamic panel techniques, we find that global financial crisis in OECD-EU donor countries are causes for the significant downside of ODA flows to the LDCs. Consequently it adversely affects through the various transmission channels (e.g., ODA disbursements, remittances, bilateral financial flows, export growth) to the LDCs economic growth. Our results also explore that due to countercyclical role of ODA flows from the donors¡¯ largely affect to the LDCs economic development process negatively. The robustness checks using alternative estimation technique supports our original estimation results in every context.

Keywords: Financial Crisis; ODA; Economic Growth; OECD-EU Donors; LDCs (search for similar items in EconPapers)
JEL-codes: F35 F39 O11 O5 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Global financial crisis and foreign development assistance shocks in least developing countries (2012)
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