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Foreign Aid and Export Performance: A Panel Data Analysis of Developing Countries

Jonathan Munemo (), Subhayu Bandyopadhyay () and Arabinda Basistha

No 06-10 Classification-, Working Papers from Department of Economics, West Virginia University

Abstract: The effect of foreign aid on economic activity of a country can be dampened as it can potentially have adverse effects on exports through a real exchange rate appreciation. In this study we examine the long-term relationship between export performance and foreign aid in developing countries while accounting for other factors. The estimates do not show negative effect of foreign aid on exports. The estimated coefficients are mostly positive but insignificant. The result is robust to use of two different export performance measures and different sub-samples.

Keywords: Foreign aid; export performance; developing countries. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-int
Date: 2006
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Working Paper: Foreign aid and export performance: a panel data analysis of developing countries (2007) Downloads
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