Foreign Aid and Free Trade and their Effect on Income: a Panel Analysis

  title={Foreign Aid and Free Trade and their Effect on Income: a Panel Analysis},
  author={A. Ali and Abdiweli M Hodan Said Isse},
  journal={The Journal of Developing Areas},
  pages={127 - 142}
  • A. Ali, Abdiweli M Hodan Said Isse
  • Published 2008
  • Economics
  • The Journal of Developing Areas
  • This paper uses a panel approach and annual observations of over 150 countries for the period 1975 – 2000 to examine the impact of foreign aid and trade on income. The paper addresses the simultaneity of international trade, foreign aid and economic performance by using a full information system or three-stage least squares approach. The findings of this paper strongly suggest that foreign aid and trade are strong determinants of GDP per worker, albeit in opposite directions. The regression… CONTINUE READING
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