|
EconStor >
Hamburgisches Welt-Wirtschafts-Archiv (HWWA) >
HWWA Discussion Paper, Hamburgisches Welt-Wirtschafts-Archiv >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/19218
|
| | |
| Title: | | Aid, Governance, and Private Foreign Investment: Some Puzzling Findings and a Possible Explanation  |
| Authors: | | Harms, Philipp Lutz, Matthias |
| Issue Date: | | 2003 |
| Series/Report no.: | | HWWA Discussion Paper 246 |
| Abstract: | | Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries? institutional environment, we find that, evaluated at the mean, the marginal effect of aid on private foreign investment is close to zero. Surprisingly, however, the effect is strictly positive for countries in which private agents face a substantial regulatory burden. After testing the robustness of this result, we offer a theoretical model that is able to rationalize our puzzling observation. |
| Subjects: | | Aid Foreign Direct Investment Institutions |
| JEL: | | F21 F35 O19 O16 |
| Document Type: | | Working Paper |
| Appears in Collections: | | HWWA Discussion Paper, Hamburgisches Welt-Wirtschafts-Archiv
|
| Files in This Item:
| |
| File |
Description |
Size | Format |
| 246.pdf | | 473.76 kB | Adobe PDF |
|
| No. of Downloads:
| |
Counter Stats
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/19218
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|