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Spatial aid spillovers during transition

Askarov, Zohid and Doucouliagos, Hristos 2015, Spatial aid spillovers during transition, European journal of political economy, vol. 40, no. Part A, pp. 79-95, doi: 10.1016/j.ejpoleco.2015.10.005.

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Title Spatial aid spillovers during transition
Author(s) Askarov, Zohid
Doucouliagos, HristosORCID iD for Doucouliagos, Hristos orcid.org/0000-0001-5269-3556
Journal name European journal of political economy
Volume number 40
Issue number Part A
Start page 79
End page 95
Total pages 17
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2015-12
ISSN 0176-2680
Keyword(s) aid effectiveness
spatial aid spillovers
transition economies
Social Sciences
Economics
Political Science
Business & Economics
Government & Law
Summary We investigate whether development aid stimulates growth in transition economies, paying particular attention to the possibility of spatial spillovers arising from aid. We find that common borders and a shared historical and political heritage result in a complex set of associations between aid and growth. Aid has a positive impact on growth in the recipient country. However, the impact of aid also spills over to affect other nations. Aid appears to create positive spillovers through improved total factor productivity and possibly currency appreciation. At the same time, aid depletes human capital through emigration and it particularly adversely affects democracy and governance quality in other transition economies. On balance, aid generates net adverse growth spillovers in transition economies.
Language eng
DOI 10.1016/j.ejpoleco.2015.10.005
Field of Research 140202 Economic Development and Growth
1402 Applied Economics
Socio Economic Objective 910103 Economic Growth
HERDC Research category C1.1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2015, Elsevier
Persistent URL http://hdl.handle.net/10536/DRO/DU:30088178

Document type: Journal Article
Collection: Department of Economics
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