Effectiveness of different types of aid
| Bilateral (aid1) multilateral (aid2) aid | Grants (aid1) loans (aid2) | Investment-related aid (aid1) non-investment related aid (aid2) | Aid in communications (aid1) non-investment (aid2) aid | Aid in infrastructure (aid1) non-investment (aid2) aid | Aid in institutions (aid1) non-investment related aid (aid2) | |
|---|---|---|---|---|---|---|
| Dependent variable: Investment/GDP | (1) | (2) | (3) | (4) | (5) | (6) |
| Aid1 | 0.18*** (0.09) | 0.05 (0.09) | 1.37** (0.66) | 4.23*** (1.58) | 3.94*** (1.80) | 0.16 (0.71) |
| Aid2 | 0.62*** (0.17) | −0.24 (0.19) | 0.24*** (0.08) | 0.25*** (0.08) | 0.18*** (0.06) | 0.24*** (0.08) |
| Domestic savings | 0.33*** (0.04) | 0.27*** (0.04) | 0.33*** (0.04) | 0.33*** (0.04) | 0.32*** (0.04) | 0.32*** (0.04) |
| Trade openness | 0.15*** (0.01) | 0.16*** (0.01) | 0.14*** (0.01) | 0.14*** (0.01) | 0.15*** (0.01) | 0.14*** (0.01) |
| AR term | 0.77*** (0.02) | 0.72*** (0.02) | 0.75*** (0.02) | 0.75*** (0.02) | 0.75*** (0.02) | 0.75*** (0.02) |
| Country-fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| R² | 0.82 | 0.83 | 0.83 | 0.83 | 0.83 | 0.83 |
| Durbin-Watson | 2.20 | 2.17 | 2.21 | 2.21 | 2.21 | 2.21 |
| Obs. | 3,816 | 2,611 | 3,297 | 3,297 | 3,310 | 3,297 |
| Cross-sections | 115 | 110 | 114 | 114 | 114 | 114 |
| Bilateral (aid1) multilateral (aid2) aid | Grants (aid1) loans (aid2) | Investment-related aid (aid1) non-investment related aid (aid2) | Aid in communications (aid1) non-investment (aid2) aid | Aid in infrastructure (aid1) non-investment (aid2) aid | Aid in institutions (aid1) non-investment related aid (aid2) | |
|---|---|---|---|---|---|---|
| Dependent variable: Investment/GDP | (1) | (2) | (3) | (4) | (5) | (6) |
| Aid1 | 0.18*** (0.09) | 0.05 (0.09) | 1.37** (0.66) | 4.23*** (1.58) | 3.94*** (1.80) | 0.16 (0.71) |
| Aid2 | 0.62*** (0.17) | −0.24 (0.19) | 0.24*** (0.08) | 0.25*** (0.08) | 0.18*** (0.06) | 0.24*** (0.08) |
| Domestic savings | 0.33*** (0.04) | 0.27*** (0.04) | 0.33*** (0.04) | 0.33*** (0.04) | 0.32*** (0.04) | 0.32*** (0.04) |
| Trade openness | 0.15*** (0.01) | 0.16*** (0.01) | 0.14*** (0.01) | 0.14*** (0.01) | 0.15*** (0.01) | 0.14*** (0.01) |
| AR term | 0.77*** (0.02) | 0.72*** (0.02) | 0.75*** (0.02) | 0.75*** (0.02) | 0.75*** (0.02) | 0.75*** (0.02) |
| Country-fixed effects | Yes | Yes | Yes | Yes | Yes | Yes |
| 0.82 | 0.83 | 0.83 | 0.83 | 0.83 | 0.83 | |
| Durbin-Watson | 2.20 | 2.17 | 2.21 | 2.21 | 2.21 | 2.21 |
| Obs. | 3,816 | 2,611 | 3,297 | 3,297 | 3,310 | 3,297 |
| Cross-sections | 115 | 110 | 114 | 114 | 114 | 114 |
Notes
*based on the simple 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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