FOREIGN AID, FDI, ECONOMIC FREEDOM AND ECONOMIC GROWTH IN ASIAN COUNTRIES: A REVISIT

Abstract

This paper examines the effectiveness of foreign aid, foreign direct investment and economic freedom in the 28 ASIAN countries in a panel framework. The model includes the foreign aid, foreign direct investment, six measures of economic freedom, labor force and capital stock. Estimation analysis was carried out by using pooled annual time series data from 1998 to 2007. Before carrying out the estimation, the time series properties of the data are diagnosed and an error-correction model is developed and estimated using a fixed-effects estimator and by giving generalized least square cross-section weights. The results indicate that an increase in the business freedom, financial freedom, trade freedom and stock of domestic capital are significant factors that positively affect economic growth in these countries while investment freedom, inflow of foreign direct investment and population are significant factor which affects negatively the economic growth in 28 Asian countries.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 0 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.