Regions and Super-Regions in Economic Development: Global Demarcations in the Impact of Foreign Aid on Foreign Investment
29 Pages Posted: 4 Sep 2012 Last revised: 8 Jan 2013
Date Written: January 2013
Global demarcations exist between development aid and foreign direct investment. Rigorous statistical analysis that contrasts the relative homogeneous and heterogeneous influences of time-series panel data allows regions in the developing world to define themselves endogenously. The results suggest that regions can be classified as either “aid-oriented” or “investment-oriented.” Evidence-based support for international development should appropriately account for these cross-region similarities when developing policies on the incentives for foreign investment and market-based economic growth.
Keywords: foreign aid, foreign direct investment, panel data, international organizations, spatial time series
JEL Classification: F21, F35, C33, O19
Suggested Citation: Suggested Citation