On the simultaneity problem in the aid and growth debate

Brueckner, Markus (2013) On the simultaneity problem in the aid and growth debate. Journal of Applied Econometrics, 28 1: 126-150. doi:10.1002/jae.1259

Author Brueckner, Markus
Title On the simultaneity problem in the aid and growth debate
Journal name Journal of Applied Econometrics   Check publisher's open access policy
ISSN 0883-7252
Publication date 2013-01
Year available 2011
Sub-type Article (original research)
DOI 10.1002/jae.1259
Open Access Status
Volume 28
Issue 1
Start page 126
End page 150
Total pages 25
Place of publication Chichester, West Sussex, United Kingdom
Publisher John Wiley & Sons
Language eng
Abstract This paper shows that foreign aid has a significant positive average effect on real per capita gross domestic product (GDP) growth if, and only if, the quantitatively large negative reverse causal effect of per capita GDP growth on foreign aid is adjusted for in the growth regression. Instrumental variables estimates show that a 1 percentage point increase in GDP per capita growth decreased foreign aid by over 4%. Adjusting for this quantitatively large, negative reverse causal effect of economic growth on foreign aid shows that a 1% increase in foreign aid increased real per capita GDP growth by around 0.1 percentage points.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 13 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 23 times in Scopus Article | Citations
Google Scholar Search Google Scholar
Created: Thu, 05 Feb 2015, 16:31:21 EST by Alys Hohnen on behalf of School of Economics