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Governance and Foreign Aid in ASIAN Countries

Author

Listed:
  • Aviral Kumar Tiwari

    (ICFAI University, Tripura)

  • Mamoni Kalita

    (ICFAI, University, Tripura)

Abstract

This paper examines the determinants of flow of foreign aid in the 20 ASIAN countries in a panel framework. The model includes the foreign aid, foreign direct investment, six measures of governance, along with the purely economic variables which have been taken as control variables. Estimation analysis was carried out by using pooled annual time series data from 2002 to 2008 in the framework of fixed and random effect model. Relevance of GMM (1991) and GMM (1998) estimates were also evaluated. We find that there is strong evidence of significantly positive impact of past year's aid flow and regulatory quality on the current year's aid flow while significantly negative impact of exports of goods and services, political stability and control over corruption on the current year's aid flow, weak evidence of the negative impact of population, voice and accountability, and rule of law on the current year's aid flow and weak evidence of significantly positive impact of government effectiveness on the current year's aid flow.

Suggested Citation

  • Aviral Kumar Tiwari & Mamoni Kalita, 2011. "Governance and Foreign Aid in ASIAN Countries," Economics Bulletin, AccessEcon, vol. 31(1), pages 453-465.
    • Handle: RePEc:ebl:ecbull:eb-10-00724
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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I1-P44.pdf
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    References listed on IDEAS

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    Cited by:

    1. Vikas Gautam & Suresh K G & Aviral Kumar Tiwari, 2013. "Impact Of Real Exchange Rates On Exports Of Agricultural Commodities: Evidence From India," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 11, pages 46-58, June.
    2. Aviral Kumar Tiwari, 2011. "Tourism, Exports and FDI as a Means of Growth: Evidence from four Asian Countries," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(40), pages 131-151, June.
    3. Abdelbary, Islam & Benhin, James, 2019. "Governance, capital and economic growth in the Arab Region," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 184-191.
    4. Ismahene Yahyaoui & Najeh Bouchoucha, 2020. "Foreign Aid-Growth Nexus in Africa: Do Institutions Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1663-1689, December.
    5. Noor-e-Saher, 2011. "Impact of Oil Prices on Economic Growth and Exports Earning: In the Case of Pakistan and India," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(40), pages 117-151, June.

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    More about this item

    Keywords

    Foreign Aid; Governance; Panel Data; Generalized Method of Moments;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • G3 - Financial Economics - - Corporate Finance and Governance

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