Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/27461 
Year of Publication: 
2008
Series/Report no.: 
IAI Discussion Papers No. 171
Publisher: 
Georg-August-Universität Göttingen, Ibero-America Institute for Economic Research (IAI), Göttingen
Abstract: 
Foreign aid is given for a combination of economic, political, and humanitarian motives. While its impact on economic development in recipient countries has been the main focus of research recently, we concentrate on the question to what extent it also promotes donor countries’ exports. We examine this issue using Germany as a case study where the positive impact of aid on exports has been found to be extremely high. Using more advanced methods, we compute an average return (between EUR 1.49 to EUR 1.72) of one EUR of aid spent, well below previous findings, but still surprisingly large and robust.
Subjects: 
bilateral aid
donors' exports
time series properties of panel data
ECM and DOLS estimation in a panel context
JEL: 
F14
F35
C23
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.