Revisiting the Aid Growth Nexus New Evidence on 56 Least Developed Countries

Eko Sugiyanto () and Kumba Digdowiseiso ()
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Eko Sugiyanto: Department of Public Administration Faculty of Social and Political Science University of National Jakarta Indonesia, Postal: ID
Kumba Digdowiseiso: Department of Management Faculty of Economics University of National Jakarta Indonesia, Postal: ID

Journal of Advanced Research in Law and Economics, 2017, vol. 8, issue 6, 1950-1958

Abstract: Many scholars have observed the aid growth nexus with no consensus regarding the results This study tries to investigate the potential non linearities relationship between aid and growth as well as to explore whether aid is more effective in countries with good policies In the panel specifications we use six time periods in 56 Least Developed countries namely 1985 1989 1990 1994 1995 1999 2000 2004 2005 2009 2010 2014 By using the panel Generalized Method of Moments GMM estimation we find that a more positive impact of aid on growth in good policy environments is not a robust result in all models However our study confirms a non linear relationship between aid and growth

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:srs:jarle0:v:8:y:2017:i:6:p:1950-1958

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