| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Aid, Governance, and Private Foreign Investment: Some Puzzling Findings and a Possible Explanation
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| Autores: |
Harms, Philipp
Lutz, Matthias
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| Data: |
2006-03-27
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| Ano: |
2003
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| Palavras-chave: |
Aid
Foreign Direct Investment
Institutions
International Relations/Trade
F35
F21
O16
O19
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| Resumo: |
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.
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| Tipo: |
Working or Discussion Paper
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| Idioma: |
Inglês
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| Identificador: |
20496
http://purl.umn.edu/26128
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| Editor: |
AgEcon Search
|
| Relação: |
Hamburg Institute of International Economics>Discussion Paper Series
HWWA Discussion Paper 246
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| Formato: |
37
application/pdf
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