|
| |
| Rajarshi Mitra and Md. Sharif Hossain |
| |
| ''Foreign Aid and Economic Growth in the Philippines'' |
| ( 2013, Vol. 33 No.3 ) |
| |
| |
| With recent studies generating skepticism toward aid-effectiveness for economic growth of some aid-dependent economies, the need to re-examine the effectiveness of foreign aid for economic growth has gained increasing importance. This paper examines the role of foreign aid in per-capita economic growth in the Philippines, a country that has historically been one of the largest recipients of foreign aid. A VECM is estimated for the period 1970-2010. Results indicate a significantly negative relationship between foreign aid and per-capita economic growth. A 1% rise in the share of aid in GDP results in a fall in per-capita real income by 0.51%. |
| |
| |
| Keywords: VECM, Cointegration Test, Short-Run and Long-Run Elasticities. |
JEL:
F4 - Macroeconomic Aspects of International Trade and Finance: General |
| |
| Manuscript Received : Jan 23 2013 | | Manuscript Accepted : Jul 11 2013 |
|
