The determinants of Pacific island countries large foreign aid requirement are examined using a panel corrected standard errors and a country-fixed-effects model for the period 1985-99. Empirical results provide confirmation that poor economic growth, foreign exchange shortage, quality of life, smal
Governance and foreign aid in Pacific Island countries
β Scribed by Azmat Gani
- Publisher
- John Wiley and Sons
- Year
- 2009
- Tongue
- English
- Weight
- 108 KB
- Volume
- 21
- Category
- Article
- ISSN
- 0954-1748
- DOI
- 10.1002/jid.1480
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β¦ Synopsis
Abstract
This paper examines the relationship between indicators of governance and per capita foreign aid in a crossβsection of seven PICs. Controlling for poor economic growth, foreign exchange shortage and small size, a fixedβeffects model correcting for AR (1) errors is tested for the period 1996β2004 that incorporates five measures of governance. The findings here confirm that voice and accountability, rule of law and corruption are negatively correlated with per capita foreign aid. However, regulatory quality and government effectiveness are positively associated with per capita foreign aid. Some policy implications are drawn. Copyright Β© 2008 John Wiley & Sons, Ltd.
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