Foreign aid as a catalyst for improving productive capabilities in recipients
Bibliographic Data
| ID | 21594220 |
|---|---|
| Authors | Sevde Arpaci‐Ayhan (0000-0002-2551-5807, Graduate School of International Studies Seoul National University Seoul Republic of Korea, corresponding author) |
| Year | 2023 |
| Volume | 35 |
| Issue | 5 |
| Pages | 738-760 |
| Publication date | 2023-07-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of International Development (JOURNAL) |
| Journal identifiers | ISSN: 0954-1748 • E-ISSN: 1099-1328 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/jid.3706 |
| OpenAlex | W4309092782 |
| Language | EN |
| References cited | 64 |
This article empirically investigates the impact of foreign aid on recipients' productive capabilities. Panel data consists of 86 countries covering the period 2003–2019. The novelty of this study is in linking aid to a new proxy for measuring productive capabilities—the economic complexity index. Because of its ability to predict future growth, economic complexity is valuable in gauging aid effectiveness. The findings show that foreign aid benefits the recipients' economic complexity, although the results are mixed when aid is disaggregated by sector and type at different income levels. Trade openness and foreign direct investment are additional factors affecting economic complexity
Business · Econometrics · Economics · Foreign direct investment · Macroeconomics · Novelty · Openness to experience · Panel data · Computer Science · Economic and Technological Innovation · Economic Growth and Development · Innovation and Socioeconomic Development
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| Highly cited | No |
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