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Does investment replace aid as countries become more developed?

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dc.contributor.author Kristjánsdóttir, Helga
dc.date.accessioned 2021-12-21T01:02:29Z
dc.date.available 2021-12-21T01:02:29Z
dc.date.issued 2019
dc.identifier.citation Kristjánsdóttir , H 2019 , ' Does investment replace aid as countries become more developed? ' , BALTIC JOURNAL OF ECONOMIC STUDIES , vol. 5 , no. 2 , pp. 256-261 . https://doi.org/10.30525/2256-0742/2019-5-2-256-261
dc.identifier.issn 2256-0742
dc.identifier.other PURE: 44071897
dc.identifier.other PURE UUID: c2a91ed4-d9b7-4f90-be0d-baae0de4f3f2
dc.identifier.other WOS: 000467788800034
dc.identifier.uri https://hdl.handle.net/20.500.11815/2775
dc.description.abstract This paper looks at the correlation between aid inflow and foreign direct investment inflow to the heavily indebted poor countries Malawi, Mozambique and Ghana, classified as developing countries. Data covers World Bank measures for aid and foreign direct investment in these countries. Also, crop production index is accounted for, as well as current account balance, and the gross domestic product of the countries analyzed. Dataset runs from 1970 through 2004, using a simultaneous equation system to determine the interrelation. Due to the occasional small scale of flow, the inverse hyperbolic sine function is used, rather than a logarithmic function. Results indicate that when the sample countries experience a higher income per capita, complementary effects diminish at the cost of supplementary effects. Therefore, FDI can be considered to replace aid after a certain development has been reached within the developing economies analyzed. The answer to the paper title is yes, investment does replace aid as countries become more developed.
dc.format.extent 6
dc.format.extent 256-261
dc.language.iso en
dc.relation.ispartofseries BALTIC JOURNAL OF ECONOMIC STUDIES; 5(2)
dc.rights info:eu-repo/semantics/openAccess
dc.subject Erlendar fjárfestingar
dc.subject Foreign Direct Investment
dc.subject Aid
dc.subject Trade
dc.subject Developing Countries
dc.subject SDG 7 - Affordable and Clean Energy
dc.subject SDG 10 - Reduced Inequalities
dc.subject SDG 5 - Gender Equality
dc.subject SDG 13 - Climate Action
dc.subject SDG 6 - Clean Water and Sanitation
dc.subject SDG 8 - Decent Work and Economic Growth
dc.subject SDG 1 - No Poverty
dc.subject SDG 9 - Industry, Innovation, and Infrastructure
dc.title Does investment replace aid as countries become more developed?
dc.type /dk/atira/pure/researchoutput/researchoutputtypes/contributiontojournal/article
dc.description.version Peer reviewed
dc.identifier.doi https://doi.org/10.30525/2256-0742/2019-5-2-256-261
dc.contributor.school School of Business and Science

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