Does foreign aid really attract foreign investors? New evidence from panel cointegration

Julian Donaubauer

VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association

Abstract: This paper examines whether foreign aid contributes to attracting foreign direct investment (FDI) in aid receiving countries. Using both homogeneous and heterogeneous panel cointegration techniques, I find that the effect of foreign aid on FDI is negative. This is in contrast to previous studies that usually found a positive association between aid and FDI.

JEL-codes: O00 O10 O11 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (1)

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Journal Article: Does foreign aid really attract foreign investors? New evidence from panel cointegration (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc14:100495

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