Aid and growth: A study of South East Asia

Paul Burke; Fredoun Z Ahmadi-Esfahani

doi:10.1016/j.asieco.2006.02.006

Aid and growth: A study of South East Asia

Paul Burke, Fredoun Z Ahmadi-Esfahani

Research output: Contribution to journal › Article

Abstract

The success of foreign aid in promoting economic growth in developing nations is an issue of considerable controversy. In this article, the effectiveness of aid in promoting growth in three South East Asian countries - Thailand, Indonesia and the Philippines - is empirically tested, using a simultaneous-equation model in which growth and savings are jointly determined. The results indicate that aid had an insignificant effect on the growth rates of the three nations during 1970-2000 and did not displace domestic savings. The findings appear valid for both before and during the Asian financial crisis and underline the importance of exports and foreign direct investment in the South East Asian growth experience.

Original language	English
Pages (from-to)	350-362
Journal	Journal of Asian Economics
Volume	17
Issue number	2006
DOIs	https://doi.org/10.1016/j.asieco.2006.02.006
Publication status	Published - 2006

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10.1016/j.asieco.2006.02.006

http://hdl.handle.net/1885/55423

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title = "Aid and growth: A study of South East Asia",

abstract = "The success of foreign aid in promoting economic growth in developing nations is an issue of considerable controversy. In this article, the effectiveness of aid in promoting growth in three South East Asian countries - Thailand, Indonesia and the Philippines - is empirically tested, using a simultaneous-equation model in which growth and savings are jointly determined. The results indicate that aid had an insignificant effect on the growth rates of the three nations during 1970-2000 and did not displace domestic savings. The findings appear valid for both before and during the Asian financial crisis and underline the importance of exports and foreign direct investment in the South East Asian growth experience.",

author = "Paul Burke and Ahmadi-Esfahani, {Fredoun Z}",

year = "2006",

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language = "English",

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AU - Burke, Paul

AU - Ahmadi-Esfahani, Fredoun Z

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N2 - The success of foreign aid in promoting economic growth in developing nations is an issue of considerable controversy. In this article, the effectiveness of aid in promoting growth in three South East Asian countries - Thailand, Indonesia and the Philippines - is empirically tested, using a simultaneous-equation model in which growth and savings are jointly determined. The results indicate that aid had an insignificant effect on the growth rates of the three nations during 1970-2000 and did not displace domestic savings. The findings appear valid for both before and during the Asian financial crisis and underline the importance of exports and foreign direct investment in the South East Asian growth experience.

AB - The success of foreign aid in promoting economic growth in developing nations is an issue of considerable controversy. In this article, the effectiveness of aid in promoting growth in three South East Asian countries - Thailand, Indonesia and the Philippines - is empirically tested, using a simultaneous-equation model in which growth and savings are jointly determined. The results indicate that aid had an insignificant effect on the growth rates of the three nations during 1970-2000 and did not displace domestic savings. The findings appear valid for both before and during the Asian financial crisis and underline the importance of exports and foreign direct investment in the South East Asian growth experience.

U2 - 10.1016/j.asieco.2006.02.006

DO - 10.1016/j.asieco.2006.02.006

M3 - Article

VL - 17

SP - 350

EP - 362

JO - Journal of Asian Economics

JF - Journal of Asian Economics

SN - 1049-0078

IS - 2006

ER -

Aid and growth: A study of South East Asia

Abstract

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