The impact of sectoral foreign aid on growth
Since donors started providing foreign assistance to developing countries, a broad empirical literature has emerged to investigate the effectiveness of foreign aid on growth of the recipient countries. This substantial and growing body of research in theoretical and empirical literature has increase...
| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
School of Social Sciences, Universiti Sains Malaysia
2012
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| Online Access: | http://psasir.upm.edu.my/id/eprint/51367/ http://psasir.upm.edu.my/id/eprint/51367/1/15-16.pdf |
| _version_ | 1848851813828132864 |
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| author | Saidon, Ruhaida Yusop, Zulkornain Ismail, Normaz Wana Law, Siong Hook |
| author_facet | Saidon, Ruhaida Yusop, Zulkornain Ismail, Normaz Wana Law, Siong Hook |
| author_sort | Saidon, Ruhaida |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Since donors started providing foreign assistance to developing countries, a broad empirical literature has emerged to investigate the effectiveness of foreign aid on growth of the recipient countries. This substantial and growing body of research in theoretical and empirical literature has increased the knowledge about the effectiveness of foreign aid in promoting growth. This study contributed to the empirics of growing debate on foreign aid-growth nexus by investigating the impact of foreign aid on growth in recipient countries based on disaggregated foreign aid figures. We disaggregated foreign aid into four main sector, which are; (i) aid to social infrastructure and services sector, (ii) aid to economic infrastructure and services sector, (iii) aid to production sector and (iv) aid to multi sector. Then we estimate these sectoral aid disaggregation on growth by utilized the System Generalized Method of Moments (GMM) method. We use a panel data of 83 aid’s recipient countries covering the period of 1995-2009. The results indicated that different sectoral foreign aid exerted different impact on growth. Aid to multi sectors has significant impact in increasing the growth, while aid to economic infrastructure and services sectors was found to decrease growth. In addition, aid to social infrastructure and services and aid to production sectors were positively insignificant and negatively insignificant affected the growth respectively. |
| first_indexed | 2025-11-15T10:28:09Z |
| format | Conference or Workshop Item |
| id | upm-51367 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:28:09Z |
| publishDate | 2012 |
| publisher | School of Social Sciences, Universiti Sains Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-513672017-04-04T03:34:05Z http://psasir.upm.edu.my/id/eprint/51367/ The impact of sectoral foreign aid on growth Saidon, Ruhaida Yusop, Zulkornain Ismail, Normaz Wana Law, Siong Hook Since donors started providing foreign assistance to developing countries, a broad empirical literature has emerged to investigate the effectiveness of foreign aid on growth of the recipient countries. This substantial and growing body of research in theoretical and empirical literature has increased the knowledge about the effectiveness of foreign aid in promoting growth. This study contributed to the empirics of growing debate on foreign aid-growth nexus by investigating the impact of foreign aid on growth in recipient countries based on disaggregated foreign aid figures. We disaggregated foreign aid into four main sector, which are; (i) aid to social infrastructure and services sector, (ii) aid to economic infrastructure and services sector, (iii) aid to production sector and (iv) aid to multi sector. Then we estimate these sectoral aid disaggregation on growth by utilized the System Generalized Method of Moments (GMM) method. We use a panel data of 83 aid’s recipient countries covering the period of 1995-2009. The results indicated that different sectoral foreign aid exerted different impact on growth. Aid to multi sectors has significant impact in increasing the growth, while aid to economic infrastructure and services sectors was found to decrease growth. In addition, aid to social infrastructure and services and aid to production sectors were positively insignificant and negatively insignificant affected the growth respectively. School of Social Sciences, Universiti Sains Malaysia 2012 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/51367/1/15-16.pdf Saidon, Ruhaida and Yusop, Zulkornain and Ismail, Normaz Wana and Law, Siong Hook (2012) The impact of sectoral foreign aid on growth. In: USM-AUT International Conference (UAIC) 2012, 17-18 Nov. 2012, Bayview Beach Resort, Penang, Malaysia. (pp. 803-813). |
| spellingShingle | Saidon, Ruhaida Yusop, Zulkornain Ismail, Normaz Wana Law, Siong Hook The impact of sectoral foreign aid on growth |
| title | The impact of sectoral foreign aid on growth |
| title_full | The impact of sectoral foreign aid on growth |
| title_fullStr | The impact of sectoral foreign aid on growth |
| title_full_unstemmed | The impact of sectoral foreign aid on growth |
| title_short | The impact of sectoral foreign aid on growth |
| title_sort | impact of sectoral foreign aid on growth |
| url | http://psasir.upm.edu.my/id/eprint/51367/ http://psasir.upm.edu.my/id/eprint/51367/1/15-16.pdf |