<< Chapter < Page Chapter >> Page >

Trade is the engine of growth, as seen in the development history of the advanced nations in the nineteenth andearly twentieth centuries. Countries benefit from trade thanks to the specialization of production based on their comparativeadvantages and economies of scale. Furthermore, trade is expected to have a positive impact on growth in the long-run in terms ofpositive externalities such as imported technology and increased knowledge base. However, developing countries are currently facingthe problem of declining terms of trade, in which the price of their exports relative to their imports price falls. Trade barriersimposed by the developed countries are pressing issues nowadays.

Theoretically, foreign direct investment (FDI) is believed to enhance economic growth through improvement intechnology, efficiency and productivity. In short, it is a channel through which advanced technology and management practices aretransferred from developed to developing countries.

The impact of ODA or foreign aid though, still remains ambiguous but likely to be positive in good-policycountries where the reform is initiated by local government and supported timely and efficiently by donors. However, a number offactors such as the fungibility of aid, poor institutions and corruption or the likes, may hinder the efficiency of aid. How doesforeign aid affect growth in developing countries and how does this relation vary across regions? These are the issues that the studywill focus on.

Investments in human capital are supposed to be positively related with growth. It is the key input to theresearch sector, which generates the new products or ideas that underlie technological progress. Other things being equal,countries with higher human capital tend to grow faster (Barro, 1991). This implies that the coefficient of SCHOOL isconventionally expected to be positive.

As mentioned earlier, in order to investigate the impact of aid on growth across regions, dummies EASTASIA,SOUTHASIA and SUBSAHARA are used for East Asia, South Asia, Sub-Saharan Africa regions respectively. Additionally, an INLANDdummy for inland countries under study is also included. Then, the slope dummies for these respective regions, i.e ODA*EASTASIA,ODA*SOUTHASIA, ODA*SUBSAHARA and ODA*INLAND are incorporated.

4.2. Estimation techniques

The Ordinary Least Squared (OLS) technique is used to estimate the effects of explanatory variables on the GDPper capita growth. 1

1 The diagnostic tests, such as Breusch-Godfrey, White Correction of Standard Errors, Ramsey RESETand Jarque-Bera tests are conducted to check for the problems of autocorrelation, heteroskedasticity, wrong functional form use andresidual non-normality respectively. A multicollinearity test and F-test for every regression are also conductedcorrespondingly.

4.3. Data description

Initially, I tried to collect data on GDP, gross domestic saving, foreign direct investment, officialdevelopment assistance, secondary school pupils, trade and population for 137 developing countries over the period from 1975to 2000 from World Development Indicators (WDI). Due to the limitation of data, finally a sample of 39 countries wasobtained.

Questions & Answers

what is microbiology
Agebe Reply
What is a cell
Odelana Reply
what is cell
Mohammed
how does Neisseria cause meningitis
Nyibol Reply
what is microbiologist
Muhammad Reply
what is errata
Muhammad
is the branch of biology that deals with the study of microorganisms.
Ntefuni Reply
What is microbiology
Mercy Reply
studies of microbes
Louisiaste
when we takee the specimen which lumbar,spin,
Ziyad Reply
How bacteria create energy to survive?
Muhamad Reply
Bacteria doesn't produce energy they are dependent upon their substrate in case of lack of nutrients they are able to make spores which helps them to sustain in harsh environments
_Adnan
But not all bacteria make spores, l mean Eukaryotic cells have Mitochondria which acts as powerhouse for them, since bacteria don't have it, what is the substitution for it?
Muhamad
they make spores
Louisiaste
what is sporadic nd endemic, epidemic
Aminu Reply
the significance of food webs for disease transmission
Abreham
food webs brings about an infection as an individual depends on number of diseased foods or carriers dully.
Mark
explain assimilatory nitrate reduction
Esinniobiwa Reply
Assimilatory nitrate reduction is a process that occurs in some microorganisms, such as bacteria and archaea, in which nitrate (NO3-) is reduced to nitrite (NO2-), and then further reduced to ammonia (NH3).
Elkana
This process is called assimilatory nitrate reduction because the nitrogen that is produced is incorporated in the cells of microorganisms where it can be used in the synthesis of amino acids and other nitrogen products
Elkana
Examples of thermophilic organisms
Shu Reply
Give Examples of thermophilic organisms
Shu
advantages of normal Flora to the host
Micheal Reply
Prevent foreign microbes to the host
Abubakar
they provide healthier benefits to their hosts
ayesha
They are friends to host only when Host immune system is strong and become enemies when the host immune system is weakened . very bad relationship!
Mark
what is cell
faisal Reply
cell is the smallest unit of life
Fauziya
cell is the smallest unit of life
Akanni
ok
Innocent
cell is the structural and functional unit of life
Hasan
is the fundamental units of Life
Musa
what are emergency diseases
Micheal Reply
There are nothing like emergency disease but there are some common medical emergency which can occur simultaneously like Bleeding,heart attack,Breathing difficulties,severe pain heart stock.Hope you will get my point .Have a nice day ❣️
_Adnan
define infection ,prevention and control
Innocent
I think infection prevention and control is the avoidance of all things we do that gives out break of infections and promotion of health practices that promote life
Lubega
Heyy Lubega hussein where are u from?
_Adnan
en français
Adama
which site have a normal flora
ESTHER Reply
Many sites of the body have it Skin Nasal cavity Oral cavity Gastro intestinal tract
Safaa
skin
Asiina
skin,Oral,Nasal,GIt
Sadik
How can Commensal can Bacteria change into pathogen?
Sadik
How can Commensal Bacteria change into pathogen?
Sadik
all
Tesfaye
by fussion
Asiina
what are the advantages of normal Flora to the host
Micheal
what are the ways of control and prevention of nosocomial infection in the hospital
Micheal
Got questions? Join the online conversation and get instant answers!
Jobilize.com Reply

Get Jobilize Job Search Mobile App in your pocket Now!

Get it on Google Play Download on the App Store Now




Source:  OpenStax, Central eurasian tag. OpenStax CNX. Feb 08, 2009 Download for free at http://cnx.org/content/col10641/1.1
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Central eurasian tag' conversation and receive update notifications?

Ask