Complementarity Between Foreign Aid and Financial Development as a Driver of Economic Growth in Selected Emerging Markets

Tsaurai, Kunofiwa

dc.contributor.author	Tsaurai, Kunofiwa	en
dc.date.accessioned	2019-01-30T11:00:18Z
dc.date.available	2019-01-30T11:00:18Z
dc.date.issued	2018-12-24	en
dc.identifier.issn	1508-2008	en
dc.identifier.uri	http://hdl.handle.net/11089/26689
dc.description.abstract	This paper studied whether the complementarity between financial development and foreign aid promotes economic growth in selected emerging markets using the panel Fully Modified Ordinary Least Squares (FMOLS) approach, with data ranging from 1994 to 2014. Although (1) aid-growth and (2) finance-growth studies have been conclusively dealt with, the role of financial development in the aid-growth nexus has been hardly researched. Is financial development a channel through which foreign aid positively influences economic growth? The current study seeks to address these issues using selected emerging markets as a case study. The complementarity between foreign aid and financial development (domestic credit provided by the financial sector, domestic private credit provided by banks, outstanding domestic private debt securities and stock market turnover) resulted in a significant positive impact on economic growth. The study, therefore, urges selected emerging markets to implement policies which deepen the financial sector in order to allow foreign aid to positively contribute towards economic growth.	en
dc.publisher	Wydawnictwo Uniwersytetu Łódzkiego	en
dc.relation.ispartofseries	Comparative Economic Research;4	en
dc.rights	This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.	en
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0	en
dc.subject	foreign aid	en
dc.subject	financial development	en
dc.subject	economic growth	en
dc.subject	emerging markets	en
dc.subject	F35	en
dc.subject	F43	en
dc.subject	G15	en
dc.title	Complementarity Between Foreign Aid and Financial Development as a Driver of Economic Growth in Selected Emerging Markets	en
dc.page.number	45-61	en
dc.contributor.authorAffiliation	Ph.D., Associate Professor at the University of South Africa, Department of Finance, Risk Management and Banking, Pretoria, South Africa, e-mail: tsaurk@unisa.ac.za	en
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dc.contributor.authorEmail	kunofiwa.tsaurai@gmail.com	en
dc.identifier.doi	10.2478/cer-2018-0026	en
dc.relation.volume	21

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Comparative Economic Research. Central and Eastern Europe Volume 21 (2018), No. 4 [8]

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