Aid and foreign direct investment: substitutes, complements or neither?
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F12%3A10099585" target="_blank" >RIV/00216208:11230/12:10099585 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1504/IJTGM.2012.048528" target="_blank" >http://dx.doi.org/10.1504/IJTGM.2012.048528</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1504/IJTGM.2012.048528" target="_blank" >10.1504/IJTGM.2012.048528</a>
Alternative languages
Result language
angličtina
Original language name
Aid and foreign direct investment: substitutes, complements or neither?
Original language description
This paper examines whether official aid, Aid, and foreign direct investment, FDI, defined here as shares of recipients' gross domestic product, are substitutes, complements or neither. We hypothesise that there is no direct relationship between the twoflows. We explain how we address endogeneity and heterogeneity issues through a number of econometric methods. Applying standard panel estimators on data for around 180 countries from 1971 to 2007, Aid and FDI seem to be substitutes even after controlling for gross domestic product per capita, GDPc. However, this correlation is not significant once we allow for parameter heterogeneity and common correlated effects. When we allow for endogeneity we find that there is no causal relationship between Aid and FDI, and that GDPc does impact on Aid, but not FDI. We conclude that there is no evidence of causal relationship between Aid and FDI.
Czech name
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Czech description
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Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
<a href="/en/project/GAP403%2F10%2F1235" target="_blank" >GAP403/10/1235: Institutional Responses to Financial Market Failures</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)<br>Z - Vyzkumny zamer (s odkazem do CEZ)<br>S - Specificky vyzkum na vysokych skolach
Others
Publication year
2012
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
International Journal of Trade and Global Markets
ISSN
1742-7541
e-ISSN
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Volume of the periodical
5
Issue of the periodical within the volume
2
Country of publishing house
GB - UNITED KINGDOM
Number of pages
14
Pages from-to
119-132
UT code for WoS article
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EID of the result in the Scopus database
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