A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES

Rıfat Barış Tekin

doi:10.14780/muiibd.665756

A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES

Öz

This article tests for causality relations among economic growth, official development assistance and openness-to-trade in low income countries. A recently developed Granger causality testing methodology based on Bayesian estimation of Seemingly Unrelated Regression (SUR) systems is employed in this study. Findings suggest a direct, unidirectional causality from official development assistance to economic growth in Chad, Madagascar, Democratic Republic of the Congo, the Gambia and Sierra Leone. In Chad and the Gambia, regression coefficients are found to be negative, suggesting a negative impact of foreign aid on economic growth. We therefore fail to provide clear-cut empirical evidence in support of aid effectiveness. Test results suggest unidirectional causality from opennessto- trade to economic growth in Chad, Democratic Republic of the Congo, the Gambia, Rwanda, Mali, Niger and Togo. In all these countries, except Democratic Republic of the Congo, the mean estimation beta is positive, providing some support for the trade-led growth hypothesis. For Chad, Rwanda, Malawi and Madagascar we find evidence for positive, unidirectional causality in reverse direction, that is, from economic growth to openness-to-trade. Finally, in Benin, Burkina Faso and Mali we find evidence that foreign aid inflows Granger-cause and enhance openness-to-trade.

Anahtar Kelimeler

Development assistance,effectiveness of aid,openness to trade,economic growth,Granger causality,Bayesian estimation of Seemingly Unrelated Regression (SUR) models,low income countries

Kaynakça

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Ayrıntılar

Birincil Dil

İngilizce

Konular

Ekonomi

Bölüm

Araştırma Makalesi

Yazarlar

Rıfat Barış Tekin ^*
Türkiye

Yayımlanma Tarihi

6 Ocak 2020

Gönderilme Tarihi

6 Eylül 2019

Kabul Tarihi

29 Kasım 2019

Yayımlandığı Sayı

Yıl 2019 Cilt: 41 Sayı: 2

DOI

https://doi.org/10.14780/muiibd.665756

IZ

https://izlik.org/JA58UP35SF

Kaynak Göster

RIS / Bibtex

APA

Tekin, R. B. (2020). A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, 41(2), 503-515. https://doi.org/10.14780/muiibd.665756

AMA

1.Tekin RB. A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2020;41(2):503-515. doi:10.14780/muiibd.665756

Chicago

Tekin, Rıfat Barış. 2020. “A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES”. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 41 (2): 503-15. https://doi.org/10.14780/muiibd.665756.

EndNote

Tekin RB (01 Ocak 2020) A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 41 2 503–515.

IEEE

[1]R. B. Tekin, “A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES”, Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, c. 41, sy 2, ss. 503–515, Oca. 2020, doi: 10.14780/muiibd.665756.

ISNAD

Tekin, Rıfat Barış. “A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES”. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 41/2 (01 Ocak 2020): 503-515. https://doi.org/10.14780/muiibd.665756.

JAMA

1.Tekin RB. A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2020;41:503–515.

MLA

Tekin, Rıfat Barış. “A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES”. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, c. 41, sy 2, Ocak 2020, ss. 503-15, doi:10.14780/muiibd.665756.

Vancouver

1.Rıfat Barış Tekin. A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 01 Ocak 2020;41(2):503-15. doi:10.14780/muiibd.665756