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Does Foreign Aid Cause “Dutch Disease†?: Case of Cambodia, Lao PDR, Myanmar and Vietnam

Author

Listed:
  • Ni Lar
  • Hiroyuki Taguchi

    (Conacyt Research Fellow-Centro Geo, Centro de Investigación en Geografía y Geomática, Mexico)

  • Hiroaki Sakurai

Abstract

This paper examined the economic impacts of foreign aid from the Dutch-Disease perspective, focusing on the economies of Cambodia, Lao PDR, Myanmar and Vietnam (so-called CLMV). The CLMV were targeted in this study since they have rarely been studied in the literature in this field although their economies have still depended highly on foreign aid. We found no evidence that they have suffered from the Dutch Disease, or rather identified a positive production effect of foreign aid. We speculate that the major use of foreign aid in the CLMV has focused on economic infrastructure, which has given little room for raising consumption and contributed directly to capital accumulation there

Suggested Citation

  • Ni Lar & Hiroyuki Taguchi & Hiroaki Sakurai, 2016. "Does Foreign Aid Cause “Dutch Disease†?: Case of Cambodia, Lao PDR, Myanmar and Vietnam," Journal of Reviews on Global Economics, Lifescience Global, vol. 5, pages 180-189.
    • Handle: RePEc:lif:jrgelg:v:5:y:2016:p:180-189
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    File URL: http://www.lifescienceglobal.com/independent-journals/journal-of-reviews-on-global-economics/volume-5/85-abstract/jrge/2290-abstract-does-foreign-aid-cause-dutch-disease-case-of-cambodia-lao-pdr-myanmar-and-vietnam
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    Cited by:

    1. Abdulaziz Hamad Algaeed, 2017. "Oil Price Fluctuations and the Future of Saudi Arabian Non-Oil Traded Sector: An Empirical Investigation," Journal of Economics and Behavioral Studies, AMH International, vol. 9(4), pages 217-229.

    More about this item

    Keywords

    Foreign Aid; Dutch Disease; CLMV; ODA; Tradables and Non-Tradables; Capital Accumulation;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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