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Is Aid The Capital Component Making Countries Efficient? A Non-Parametric Production Theory Approach

Author

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  • Assoc. Prof. Ann Veiderpass

    (School of Business, Economics and Law, University of Gothenburg)

Abstract

Cross country regressions on aid effectiveness have failed to provide substantial evidence on the effects of foreign aid. This study focuses on country performance in a production theory context. By means of the non-parametric DEA method, we study 60 individual low and middle income countries over a six year period. Is there a systematic correlation between resource intensity and country efficiency? We find indications of a positive relation between capital intensity and country efficiency. We then investigate whether aid is the conclusive part of capital providing this correlation, but when linking country efficiency development to aid such a pattern is not to be found.

Suggested Citation

  • Assoc. Prof. Ann Veiderpass, 2011. "Is Aid The Capital Component Making Countries Efficient? A Non-Parametric Production Theory Approach," Journal of Global Analysis, Centre for Strategic Research and Analysis, vol. 2(1), pages 27-47, January.
    • Handle: RePEc:csy:journl:v:2:y:2011:i:1:p:27-47
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    Cited by:

    1. Ann Veiderpass, 2015. "Foreign aid and productivity," Journal of Productivity Analysis, Springer, vol. 43(3), pages 249-258, June.

    More about this item

    Keywords

    Production; Efficiency; Aid; Country Comparison.;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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