The literature has shown that aggregate aid is mostly ineffective (Doucouliagos and Paldam, 2011). However, new studies on foreign aid also show that the effect of aid depends on both aid type and the donor type (Clemens et al., 2012; Isaksson and Kotsadam, 2018). Thus, the first essay investigates the impact of education aid on educational outcomes. The study uses panel data for 83 developing countries from 2000-2014 to examine World Bank education aid. The results suggest that there is no robust evidence that education aid is effective in improving educational outcomes. The paper finds some evidence that aid improves enrollment rates in primary and secondary but not tertiary education. The results show that aid's effectiveness is determined, to a large extent, by the type of aid and the economic outcomes aid targeted. Likewise, the second essay examines whether specific types of aid are more effective across different donors. The study uses factor analysis to separate aid flows into interpretable categories, economic purposes, social purposes, and infrastructure. In addition, the study compares three donors, the World Bank, the U.S., and China. Examining the growth effect of each aid type for each donor shows that the impacts depend on aid type. All the aid types are positive irrespective of the donor, though only the U.S. aid types show some improvements economic growth. The Chinese economic aid is a complement of the World Bank economic aid. However, the Chinese social aid and the World Bank social aid are both substitutes. Both studies show that most foreign aid to developing countries is not effective, but disaggregating aid by type can lead to moderate improvements in developing countries.

No description available.

Västvärlden har de senaste åren upplevt hög och stigande inflation, något som varit ovanligt de senaste decennierna. Ekonomisk tillväxt är av stort intresse för alla länder, och inflationens effekt på tillväxten var välstuderat under 90-talet. Därefter har bidragen varit färre, men är återigen intressant att analysera med bakgrund av rådande inflationsnivåer. Studiens syfte är att undersöka om inflation påverkar real BNP-tillväxt negativt på lång sikt. Det görs genom att med paneldata från OECD undersöka fem länder i en IV-regression mellan 1973-1984 och under en elvaårsperiod med start fem år efter respektive lands införande av ett inflationsmål. Resultatet visar att inflation haft en statistiskt signifikant negativ kausal effekt på den reala BNP-tillväxten i dessa länder och tidsperioder. Det är i linje med stor del av tidigare forskning på området. / The western world has during the last couple of years witnessed high and rising inflation, which has been of rare occurrence during the last decades. Economic growth is of great interest all over the world, and during the nineties the subject of the effects inflation has on growth was well studied. Thereafter the contributions have been fewer. Given the recent levels of inflation this is once again an interesting area of study. The purpose of this paper is to examine if inflation affects real GDP growth negatively in the long run. This is made possible through the usage of panel data, collected from the OECD, where five countries are included in an IV-regression during 1973-1984 as well as the eleven year period occurring five years after the introduction of inflation targeting. The results show that the negative causal effect inflation has had on real GDP growth in these countries and time periods is of statistical significance. That is in line with a major part of the published research on the subject.

This study examines the impact of fiscal deficits on economic growth in developing countries. Based on deduction from the relevant theoretical and empirical literature, the study tests the following hypotheses regarding the impact of fiscal deficits on economic growth. First, fiscal deficits have significant positive or negative impact on economic growth in developing countries. Second, the impact of fiscal deficits on economic growth depends on the size of deficits as a percentage of GDP – that is, there is a non-linear relationship between fiscal deficits and economic growth. Third, the impact of fiscal deficits on economic growth depends on the ways in which deficits are financed. Fourth, the impact of fiscal deficits on economic growth depends on what deficit financing is used for. The study also examines whether there are any significant regional differences in terms of the relationship between fiscal deficits and economic growth in developing countries. The study uses panel data for thirty-one developing countries covering the period 1972- 2001, which is analysed based on the econometric estimation of a dynamic growth model using the Arellano and Bond (1991) generalised method of moments (GMM) technique. Overall, the results suggest the following. First, fiscal deficits per se have no any significant positive or negative impact on economic growth. Second, by contrast, when the deficit is substituted by domestic and foreign financing, we find that both domestic and foreign financing of fiscal deficits exerts a negative and statistically significant impact on economic growth with a lag. Third, we find that both categories of economic classification of government expenditure, namely, capital and current expenditure, have no significant impact on economic growth. When government expenditure is disaggregated on the basis of a functional classification, the results suggest that spending on education, defence and economic services have positive but insignificant impact on growth, while spending on health and general public services have positive and significant impact. Fourth, in terms of regional differences with regard to the estimated relationships, the study finds that, while there are some regional differences between the four different regions represented in our sample of thirty-one developing countries - namely, Asia and the Pacific, Latin America and the Caribbean, Middle East and North Africa, and Sub-Saharan Africa – these differences are not statistically significant. On the basis of these findings, the study concludes that fiscal deficits per se are not necessarily good or bad for economic growth in developing countries; how the deficits are financed and what they are used for matters. In addition, the study concludes that there are no statistically significant regional differences in terms of the relationship between fiscal deficits and economic growth in developing countries.

This study aims to identify the effects of oil income on economic growth in Iran over the period 1955-2014. The empirical literature indicates that countries with natural resources are growing more slowly than their counterparts. However, the results from this literature are far from conclusive, particularly in regard to the role played by oil-rich countries. Needless to say, this role depends on other factors as well, including the political situation in the country, the quality of institutions, and the efficacy of the financial system. Some empirical research has found that natural resources, particularly oil, can have a positive impact on the output of a country. although natural resources are not a factor of production in growth theories, studies have used different growth frameworks in order to discover whether having natural resources is a blessing or a curse. In line with recent studies, this work uses an augmented neoclassical growth model to develop a theoretical framework where oil enters the long-term output of the country through saving and investment. Overall, the results suggests that oil income has a positive impact on the level of output per capita in Iran. The findings of the econometric results are in line with the historical analysis of the study. Since different methods and proxies were used, a total of eight models were estimated. Interestingly, when PRIVY is used as an index of financial development, the result of the study changes and oil no longer has a significant impact on the economy. However, this can be translated to an inefficient allocation of credit to the private sector.

This thesis aims to investigate the impact of state fragility on capital inflows and economic growth in Nigeria over the period 1980-2015. In line with existing studies, it adopts an augmented neoclassical growth model where capital is divided into domestic and foreign capital inflows (FDI, ODA and Remittances). Using an autoregressive distributed lag (ARDL) bounds testing approach to co-integration, significant long-run relationship was confirmed between state fragility, capital flows and economic growth. The results reveal domestic capital to be very significant and contribute positively to economic growth. Similarly it was observed that remittances remain a very crucial form of capital flow to Nigeria and that the presence of state fragility makes it more significant. For ODA a positive contribution to economic growth was observed, however, the presence of state fragility renders it insignificant. In the case of FDI, the study found a negative relationship between FDI and economic growth albeit insignificant. However, the presence of state fragility makes it significant but still negative. A negative relationship was also observed between state fragility and economic growth. These findings, implies that while the issue of state fragility needs to be addressed and concerted efforts put into building state resilience, not just for the direct impact of state fragility on the economy, but also its impact on the economy through other channels such as capital flows.

Zambia is a developing nation that seeks economic growth through gross domestic product (GDP) growth, among other economic drivers. Between the years 2011 and 2020, Zambia embarked on an infrastructure development programme, mainly through construction of roads and airports. To do these projects, Zambia borrowed heavily on one hand while promoting the nation as an attractive destination for foreign direct investment (FDI) inflows on the other hand. The study sought to answer the question, can a country that is highly indebted attract meaningful FDI inflows that would spur economic growth? The research looked at a period of ten (10) years from 2010 to 2020 and analysed publicly available data to form the basis for the findings and recommendations. The research findings show that there is negative, however insignificant relationship between government debt and foreign direct investment. In addition, the findings also show that there is a positive relationship between inflation and FDI. This relationship is significant however, in contrast with a prior expectation. Moreover, a significant negative relationship between interest rate and investment was also established whilst a negative, however insignificant relationship was established between exchange rate and FDI. The implications of the recommended policy issues will only yield the desired results when implemented in an integrated manner as opposed to an exclusive approach. The government debt needs to reduce in order to make the country more attractive to foreign direct investors. Policy also needs to be formulated that should target an inflation rate that contributes to the attraction of a positive net foreign direct invest inflows. Interest rate and foreign exchange rate policies that attract investment will also need to be put in place in order to attract investments that will spur development.

No description available.

Non-compete covenants are clauses in employment contracts that forbid employees from competing with their former employers during a given time period. Recent literature has identified non-compete covenants as a new type of entry barrier to entrepreneurship within high-tech industries, impeding regional innovation, growth and employment. In Europe, the legal regime is highly heterogeneous, suggesting that certain regions might gain a competitive advantage in innovation. This study uses Fixed Effects regression and Poisson Fixed Effects regression models to investigate the ways in which non-compete covenants effect how venture capital investments stimulate regional innovation and entrepreneurship. The data set was constructed using data from The European Patent Office, the Eurostat, the World Bank and the OECD Economic Outlook. Ius Laboris overview was used to assess the enforceability of non-compete covenants in sample countries. The results show that increased supply of venture capital increases innovative activity in all regions. Relative to countries that enforce non-compete covenants, countries that restrict the use of these contracts experience higher rates of patenting activity. The level of enforceability was not found to have significant effects on new firm formation. The results suggest that financial intermediates and the legal regime have an important role in promoting regional innovation.

This paper studies the relationship between corruption and poverty, public debt, and economic growth in the Gambia, to be estimated with data from 1992 to 2016 accessed from the World Bank database using the multiple regression analysis. While extensive literature has agreed on the damaging nature of corruption, not many have tested the relation between corruption and poverty, public debt and economic growth. This thesis intends to bridge the gap in the literature through contributing a study of the relationship of corruption and poverty, public debt, and economic growth in the Gambia during the time period 1996-2016. Results indicate that corruption has a positive statistical and significant relationship with poverty in Gambia. However, the relationship between corruption and economic growth and public debt are statically insignificant. In policy terms, the Gambia must increase the fight against corruption to make their public expenditure more productive and especially to minimise poverty.