Table 2. Aid effectiveness in different...

Table 2.

Aid effectiveness in different regions of the world^*

Country groupings	Africa	SSA	North Africa	Middle East	Latin America	Asia
Dependent variable: Investment/GDP	(1)	(2)	(3)	(4)	(5)	(6)
Aid	0.28*** (0.10)	0.08** (0.04)	0.47*** (0.18)	0.52*** (0.20)	0.04 (0.13)	0.76 (0.65)
Domestic savings	0.33*** (0.05)	0.28*** (0.04)	0.70*** (0.15)	0.43*** (0.17)	0.25*** (0.05)	0.39** (0.08)
Ext debt	−0.004 (0.005)	−0.01^* (0.005)	0.04*** (0.01)	0.01 (0.02)	−0.02 (0.02)	−0.06*** (0.03)
Trade openness	0.16*** (0.02)	0.16*** (0.02)	0.09** (0.05)	0.09 (0.06)	0.10*** (0.02)	0.04 (0.03)
GDP growth	0.21*** (0.07)	0.16*** (0.05)	0.38** (0.17)	0.42** (0.17)	0.41*** (0.10)	0.59*** (0.14)
AR term	0.72*** (0.03)	0.73*** (0.03)	0.70*** (0.08)	0.74*** (0.07)	0.61*** (0.05)	0.81*** (0.04)
Investment generated by 1 dollar of aid	0.98	0.27	3.38	4.52	−−−	−−−
Country fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
I-aid-ratio	3.5	3.4	7.2	8.7	10.7	20.6
Average aid GDP (%)	6.20	6.27	3.21	2.77	1.98	1.32
R²	0.81	0.80	0.88	0.86	0.83	0.87
Durbin-Watson	1.92	1.92	1.70	1.71	1.92	1.47
Obs.	1261	1138	146	158	449	461
Cross-sections	42	37	4	6	13	16

Country groupings	Africa	SSA	North Africa	Middle East	Latin America	Asia
Dependent variable: Investment/GDP	(1)	(2)	(3)	(4)	(5)	(6)
Aid	0.28*** (0.10)	0.08** (0.04)	0.47*** (0.18)	0.52*** (0.20)	0.04 (0.13)	0.76 (0.65)
Domestic savings	0.33*** (0.05)	0.28*** (0.04)	0.70*** (0.15)	0.43*** (0.17)	0.25*** (0.05)	0.39** (0.08)
Ext debt	−0.004 (0.005)	−0.01^* (0.005)	0.04*** (0.01)	0.01 (0.02)	−0.02 (0.02)	−0.06*** (0.03)
Trade openness	0.16*** (0.02)	0.16*** (0.02)	0.09** (0.05)	0.09 (0.06)	0.10*** (0.02)	0.04 (0.03)
GDP growth	0.21*** (0.07)	0.16*** (0.05)	0.38** (0.17)	0.42** (0.17)	0.41*** (0.10)	0.59*** (0.14)
AR term	0.72*** (0.03)	0.73*** (0.03)	0.70*** (0.08)	0.74*** (0.07)	0.61*** (0.05)	0.81*** (0.04)
Investment generated by 1 dollar of aid	0.98	0.27	3.38	4.52	−−−	−−−
Country fixed effects	Yes	Yes	Yes	Yes	Yes	Yes
I-aid-ratio	3.5	3.4	7.2	8.7	10.7	20.6
Average aid GDP (%)	6.20	6.27	3.21	2.77	1.98	1.32
R²	0.81	0.80	0.88	0.86	0.83	0.87
Durbin-Watson	1.92	1.92	1.70	1.71	1.92	1.47
Obs.	1261	1138	146	158	449	461
Cross-sections	42	37	4	6	13	16

Notes

*Extended investment model; These estimations include country fixed effects. Control for Endogeneity via DOLS, autocorrelation via DFGLS technique (Prais-Winsten transformation). Robust standard errors in parentheses

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