Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19218| Title: | Aid, Governance, and Private Foreign Investment: Some Puzzling Findings and a Possible Explanation |
| Keywords: | F21 F35 O19 O16 ddc:330 Aid Foreign Direct Investment Institutions Direktinvestition Entwicklungshilfe Investitionspolitik Subvention Politische Stabilität Schätzung Aufstrebende Märkte Entwicklungsländer |
| Issue Date: | 16-Oct-2013 |
| Publisher: | |
| Description: | 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. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19218 |
| Other Identifiers: | http://hdl.handle.net/10419/19218 ppn:369408748 RePEc:zbw:hwwadp:26128 |
| Appears in Collections: | EconStor |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.