The Impact of Foreign Aid on Economic Growth in Papua New Guinea

Simon Feeny

Journal of Development Studies, 2005, vol. 41, issue 6, 1092-1117

Abstract: This article investigates the impact of foreign aid on economic growth in Papua New Guinea (PNG) using time-series data for the period 1965 to 1999. Following the most recent literature, the article examines whether aid effectiveness is conditional on levels of economic policy and governance. An empirical model is estimated using the Autoregressive Distributed Lag (ARDL) approach to cointegration proposed by Pesaran and Shin [1995]. Results provide little evidence that aid and its various components have contributed to economic growth in PNG. There is some evidence that aid is more effective during periods when the country has undertaken a World Bank Structural Adjustment Program (SAP). An alternative interpretation is that a SAP may be more effective at spurring growth when supported by foreign aid.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00220380500155403 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jdevst:v:41:y:2005:i:6:p:1092-1117

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FJDS20

DOI: 10.1080/00220380500155403

Access Statistics for this article

Journal of Development Studies is currently edited by Howard White, Oliver Morrissey and Ken Shadlen

More articles in Journal of Development Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().