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Estimating aid-growth equations: the case of Pacific island countries

Rao, Bhaskara B. and Sharma, Kanhaiya L. and Singh, Rup (2008) Estimating aid-growth equations: the case of Pacific island countries. Pacific Economic Bulletin, 23 (2). pp. 82-96. ISSN 0817-8038

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The seminal but controversial work of Burnside and Dollar (2000) has been the basis for much empirical research on the growth effects of developed aid. This article argues that the specifications adopted in these works are not consistent with the data and the statistical techniques used. A modified production function is proposed in which total factor productivity depends on time as well as the aid ratio. Our empirical results show that the effect of aid on the steady state growth rate is insignificant in the selected Pacific island countries. These countries are of interest because they are among the largest recipients of aid in per capital terms.

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Business and Economics (FBE) > School of Economics
Depositing User: Ms Neha Harakh
Date Deposited: 25 May 2008 02:32
Last Modified: 17 Jul 2012 08:13

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