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Innovation Performance and Development Assistance and Growth in Four East European Member States

In: Innovation and Capacity Building

Author

Listed:
  • Spyridon Repousis

    (University of Nicosia)

  • Petros Lois

    (University of Nicosia)

Abstract

This chapter examines the impact of international development assistance on economic growth in four southeast European member states—Croatia, Estonia, Lithuania and Slovenia—that fall into two different innovation performance groups, for a period of 16 years (1995–2010), by following a behavioural equation of flows, not an accounting identity. Our findings have shown that both international net official development assistance and official aid received, as well as net bilateral aid flows from Development Assistance Committee donors, have no statistically significant effect on gross domestic savings in two different innovation performance groups. In four European member states, with different levels of innovation performance, only per capita gross domestic product is statistically significant. The results are consistent with the notion that foreign aid transfers can distort individual incentives.

Suggested Citation

  • Spyridon Repousis & Petros Lois, 2018. "Innovation Performance and Development Assistance and Growth in Four East European Member States," Palgrave Studies in Cross-disciplinary Business Research, In Association with EuroMed Academy of Business, in: Demetris Vrontis & Yaakov Weber & Alkis Thrassou & S. M. Riad Shams & Evangelos Tsoukatos (ed.), Innovation and Capacity Building, chapter 6, pages 109-130, Palgrave Macmillan.
    • Handle: RePEc:pal:pscchp:978-3-319-90945-5_6
    DOI: 10.1007/978-3-319-90945-5_6
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