Foreign Aid and Domestic Savings: the Crowding out Effect
نویسنده
چکیده
The paper examines the relationship between foreign aid and savings using annual data for 119 countries. Regressions for each country are run separately in order to find which countries have a positive aid-saving experience. The explanatory variables chosen are thought to be exogenous to current economic policy. Countries are placed into five categories according to the strength of the aid-saving relationship. Few countries show evidence of substantial crowding out. Consequently, aid is found to be clearly beneficial to saving and, hence, investment for the preponderance of these countries. 1 Visiting Professor of Economics, Monash University Email: [email protected] (On leave from Central Michigan University Email: [email protected]) © 2007 Michael P. Shields All rights reserved. No part of this paper may be reproduced in any form, or stored in a retrieval system, without the prior written permission of the author.
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تاریخ انتشار 2007