International Trade and Finance: A North American Perspective

By Khosrow Fatemi | Go to book overview

the six-year lag structure is insignificant; the feedback effect, however, is negative and significant; and in Uruguay the relationship is insignificant.

Finally, our empirical investigations for the presence of unidirectional Granger-causation from real per capita gross unilateral transfers to real per capita gross fixed capital formation, as related in Table 15.6, are negative in Bolivia, Ecuador, and Uruguay. Similarly, the sign of Granger-causal ordering from gross fixed capital formation to unilateral transfers is negative in Chile, Colombia, and Paraguay; in Argentina the relationship is insignificant. For Peru and Venezuela the direction of Granger-causality from capital formation to unilateral transfers is also negative and significant, but only at three and four annual lag lengths, respectively. In addition, results indicate the presence of significant negative feedback effects in each country at the appropriate longest lag lengths. Moreover, in Brazil the initial effect from capital formation to unilateral transfers is significant and negative, but the feedback effect is significant and negative only for a five- year lag.


CONCLUSIONS

This chapter presents a dynamic bivariate distributed lag causal test of the aid-cum-development hypothesis. The main conclusion of our empirical investigations is that there appears to be a noncontemporaneous and statistically significant Granger-causal relationship between unilateral transfers and the recent economic development process in several South American countries. However, the direction of causal ordering is not the favorable one predicted by the aid-cum-development hypothesis. It may be inappropriate, therefore, to consider such external flows as a modus operandi for economic development in these countries.


NOTES
1.
P. N. Rosenstein- Rodan, "International Aid for Underdeveloped Countries," Review of Economics and Statistics 43, no. 2 (May 1961):107-38.
2.
Hollis B. Chenery, and M. Bruno, "Development Alternatives in an Open Economy: The Case of Israel," Economic Journal 72, no. 285 ( March 1962):79-103.
3.
Hollis B. Chenery, and Allen M. Strout, "Foreign Assistance and Economic Development," American Economic Review 61, no. 4 ( September 1966):679-733.
4.
Ronald I. McKinnon, "Foreign Exchange Constraints in Economic Development and Efficient Aid Allocation," Economic Journal 74, no. 294 (. June 1964): 388-409.
5.
Jagdish Bhagwati, and Richard S. Eckaus (eds.), Foreign Aid: Selected Readings ( Middlesex, England: Penguin Books, 1970).
6.
Goran Ohlin, "The Evolution of Aid Doctrine," Foreign Aid Policies Reconsidered ( Paris: Organization for Economic Cooperation and Development, 1956), selected parts reprinted in Foreign Aid: Selected Readings, edited by Bhagwati and Eckaus (see Note 5).

-209-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
International Trade and Finance: A North American Perspective
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 304

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.