The Short-Run Macroeconomic Impact of Foreign Aid to Small States: An Agnostic Timeseries Analysis

Henrik Hansen and Derek Headey

No RP2007-38, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This study econometrically evaluates the short-run impact of aid in small developing countries (SDCs) by applying a VAR model to study aid's impact on 'absorption' (increasing import demand) and 'spending' (increased domestic demand) across countries. Whilst our approach allows parameters to vary across countries, the focus is on average country effects and differential effects within certain subgroups of countries.

Keywords: Econometric models; Economic assistance and foreign aid; Macroeconomics; Panel analysis (search for similar items in EconPapers)
Date: 2007
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Related works:
Journal Article: The Short-Run Macroeconomic Impact of Foreign Aid to Small States: An Agnostic Time Series Analysis (2010)
Working Paper: The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:rp2007-38

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