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https://doi.org/10.1080/1331677X.2022.2160998

Aid, domestic and foreign direct investment in small states

Sampson B. Narteh-Yoe
Justice G. Djokoto
Paragon Pomeyie


Puni tekst: engleski pdf 1.749 Kb

preuzimanja: 20

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Sažetak

Small States (SS) are economies whose population barely exceeds
1.5 million. Their small population size, small land size and location,
mostly on coastal or Islands may act as a disadvantage to their rapid
economic growth and makes them susceptible to the effects of
external economic issues. Notwithstanding the disadvantages, some
of them have enjoyed rapid growth over time and are classified as
developed nations. This study examines the effect of aid, foreign direct
investment (FDI) and domestic investment (DI) on economic
growth in SS. Among SS, aid hurts the economic progress in underdeveloped
countries. However, DI and FDI have a favourable impact
on economic growth. In developed SS, aid, DI and FDI independently
do not positively influence economic growth, however, aid
with FDI, aid with trade openness and aid with domestic investment
and FDI promoted growth. In the total sample (developed and
developing SS), aid discourages economic growth, but FDI and DI
enhance economic growth. Also, aid together with FDI positively
affects economic growth. Policies should therefore be directed at
moving from accepting ‘consumption aid’ to ‘productive aid’,
increasing the amount of net FDI and increase in DI.

Ključne riječi

Aid; domestic investment; economic growth; foreign direct investment; Small States

Hrčak ID:

314017

URI

https://hrcak.srce.hr/314017

Datum izdavanja:

28.10.2022.

Posjeta: 80 *