In this paper we investigate the relationship between per capita income and foreign aid for a panel of 131 (alternatively 52) recipient countries over the period 1960 to 2006 by employing annual data and 5-year averages. Reliance on standard panel estimation techniques, such as 2-ways FE...

This paper challenges the widespread belief that FDI generally has a positive impact on economic growth in developing countries. It addresses the limitations of the existing literature and re-examines the FDI-led growth hypothesis for 28 developing countries using cointegration techniques on a...

It is frequently suggested that export diversification contributes to an acceleration of growth in developing countries. Horizontal export diversification into completely new export sectors may generate positive externalities on the rest of the economy as export oriented sectors gain from...

This study provides a re-examination of the aid-income link based on a panel data set which is downloadable at the Canadian Journal of Economics 45(1), 2012 issue. Longer time series data are available for a group of 58 countries and run from 1960 to 2007. In particular, the study aims at...

The causes and consequences of high inequality in incomes, assets, and many aspects of well-being in Latin America have recently (re-)emerged as a central research and policy issue. However, many open questions remain that will be dealt with in the contributions to this volume. First, the...