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,...

This paper examines the relationship between indicators of governance and per capita foreign aid in a cross-section of seven PICs. Controlling for poor economic growth, foreign exchange shortage and small size, a fixed-effects model correcting for AR (1) errors is tested for the period 1996-2004...