Innovation Performance and Development Assistance and Growth in Four East European Member States

Spyridon Repousis () and Petros Lois ()
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Spyridon Repousis: University of Nicosia
Petros Lois: University of Nicosia

Chapter 6 in Innovation and Capacity Building, 2018, pp 109-130 from Palgrave Macmillan

Abstract: Abstract This chapter examines the impact of international development assistance on economic growth in four southeast European member states—Croatia, Estonia, Lithuania and Slovenia—that fall into two different innovation performance groups, for a period of 16 years (1995–2010), by following a behavioural equation of flows, not an accounting identity. Our findings have shown that both international net official development assistance and official aid received, as well as net bilateral aid flows from Development Assistance Committee donors, have no statistically significant effect on gross domestic savings in two different innovation performance groups. In four European member states, with different levels of innovation performance, only per capita gross domestic product is statistically significant. The results are consistent with the notion that foreign aid transfers can distort individual incentives.

Keywords: Radical Innovation Performance; Domestic Savings; Net ODA; DAC Donors; Development Assistance Committee (DAC) (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pscchp:978-3-319-90945-5_6

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DOI: 10.1007/978-3-319-90945-5_6

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