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

Crowding out Effect of Foreign Aid in Selected Developing Countries: Panel Data Evidence

Aid Absorption and Spending in Africa: A Panel Cointegration Approach

This paper focuses on the macroeconomic management of large inflows of foreign aid. It investigates the extent to which African countries have coordinated fiscal and macroeconomic responses to aid surges. In practice, we construct a panel dataset to investigate the level of aid ‘absorption’ and ‘spending’. This paper departs from the recent empirical literature by utilising better measures for ...

Foreign Knowledge Spillovers and Total Factor Productivity Growth: Evidence from Four ASEAN Countries

This study examines the dynamic relationship between foreign direct investment (FDI) and total factor productivity having controlled for other channels of external openness: exports and imports in four ASEAN countries: Indonesia, Malaysia, Singapore, and Thailand. We employ the panel data analysis PDA (fixed effect and dynamic panel models) as well as the panel cointegration and Granger causali...

Does Joining International Treaties Attract Foreign Investment? Experimental Firm-Level Evidence

What actions can governments in developing countries take to make their economies more appealing to foreign investors? One increasingly prominent answer focuses on the effect of signing onto international economic agreements, showing that countries’ participation in investment and trade treaties is associated with greater inflow of FDI. Yet the nature of this empirical relationship remains uncl...

Impact of Foreign Aid and Levels of Education on Democracy in Pakistan

This study examines the relationships between foreign aid, levels of schooling and democracy for Pakistan using the ARDL cointegration approach. The results of study provide strong evidence for fairly robust long run as well as short run relationships among these variables for the period 1973-2008. The results state that foreign aid and primary school enrollments have negative impact on democra...