Year: 2011
Type: article
Abstract: This short paper explores the complementarity between foreign aid and foreign direct investment (FDI).Recent studies on aid concluded that aid should come to an end or be reduced with a radical modification of the terms and conditions and FDI and trade should replace aid as the engine of development.In this paper, we argue that aid complements FDI and advances the efficacy of FDI in promoting growth and development in the developing countries.Using data from the provinces in Vietnam, the statistical analysis suggests that aid has a positive impact on inflows of FDI and aid can complement FDI in promoting economic growth.
Source: Journal of Economic Integration
Authors: Chengang Wang, V. N. Balasubramanyam
Institutions: University of Bradford, Lancaster University
Language: English
Subfield: Development
Field: Social Sciences
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2102585677