B. Mak Arvin

Does democracy affect environmental quality in developing countries

This article examines the impact of democracy on environmental conditions in a large sample of developing countries for the period 1976–2003. This relationship is explored empirically using three indicators of environmental quality: carbon dioxide emissions, water pollution and deforestation damage. We find evidence that democracy is conducive to environmental improvement but that this result depends on the measure of the environmental quality that is used. We also find remarkable differences in results across our different sub-samples. The conclusion therefore is that there is no uniform relationship between democracy and the state of the environment.

Are there biases in German bilateral aid allocations

This paper presents new evidence on the nature of German bilateral foreign aid allocations. In particular, the paper focuses on the question of whether there are population and middle-income biases present in the disbursement of German assistance. Using data on German bilateral aid to 85 countries from 1973 to 1995 evidence supporting existence of a population bias is found, but no evidence is found of a middle-income bias. A bias, however, associated with a recipients coverage under the Lomé Convention is found.

Untied Aid and Exports: Do Untied Aid Disbursements Create Goodwill for Donor Exports?

ABSTRACT This paper investigates whether untied aid inflows cause donor exports to increase, reflecting creation of goodwill by the donor in a recipient country. The causation could, however, be in the opposite direction, i.e. it could be that donors with strong export performance choose to give high aid, or it could proceed in both directions simultaneously. Using time-series data on Canadian aid and exports to 35 developing countries we investigate the direction and sign of the causal relations. We conclude that they are not all of one type. Results vary across the samples based on region, income, and ties to Canada.

Biases in the allocation of Canadian official development assistance

A strong inverse relationship between per capita assistance and population of aid-receiving countries is found in an examination of Canadian bilateral foreign aid to 33 countries over the period 1982-92. However, the middle-income bias present in aid allocation of some other countries is not found in the case of Canada. Instead, there is a bias associated with the recipients membership to the Commonwealth.

Broadband penetration and economic growth nexus: evidence from cross-country panel data

This article investigates whether there are Granger causal relationships between broadband penetration, degree of urbanization, foreign direct investment and economic growth using a panel data set covering the G-20 countries for the period 1998–2011. Using our multivariate framework, we first find that all of the variables are cointegrated. Our findings further reveal a network of causal connections between the variables including short-run bidirectional causality between broadband penetration and economic growth among the more developed countries within the G-20. On the other hand, for the developing countries within the G-20, there is evidence of unidirectional causality from economic growth to broadband penetration.

Are foreign aid and migrant remittances sources of happiness in recipient countries

There is a dearth of research on how foreign aid and migrant remittances influence the level of happiness in recipient countries. This paper fills this void by presenting an empirical model where aid and remittances enter the happiness production function of a recipient country. We find that both aid and remittances are possible ingredients in the complex process of generating happiness and that their interactions, which have been ignored by previous studies in development economics, cannot be dismissed. A clear policy implication of our results is that remittances should be encouraged.

Aid and happiness: untangling the causal relationship in nine European donor countries

The goal of this paper is to use a simple causality test in the spirit of Granger to answer three questions on the relationship between the foreign aid disbursements of a donor country and its level of happiness. First, do higher aid flows make a donor happier? Second, does a happier donor give more aid? Third, does causality proceed in both directions simultaneously? Using data for nine European donors, we find that the answers to these questions are not uniform. In particular, causal relationships exist for France and the UK, but not for other countries.

Foreign aid and ecological outcomes in poorer countries: an empirical analysis

This article examines the relationship between foreign aid and ecological harm in developing countries. The study covers three types of ecological injury: carbon dioxide damage, water pollution and net deforestation. Results based on an empirical model where aid and injury are jointly determined, suggest that aid flows affect ecological conditions in poorer countries as well as being the result of these conditions.

Handbook on the Economics of Foreign Aid

It would be fair to say that foreign aid today is one of the most important factors in international relations and in the national economy of many countries – as well as one of the most researched fields in economics. Although much has been written on the subject of foreign aid, this book contributes by taking stock of knowledge in the field, with chapters summarizing long-standing debates as well as the latest advances. Several contributions provide new analytical insights or empirical evidence on different aspects of aid. As a whole, the book demonstrate how researchers have dealt with increasingly complex issues over time – both theoretical and empirical – on the allocation, impact, and efficacy of aid, with aid policies placed at the center of the discussion.

Happiness and air pollution: evidence from 14 European countries

The causal relationship between happiness and air pollution is examined using a sample of 14 European countries. Two sets of results are presented using the notion of Granger causality. For individual countries, the existence of a unidirectional or bidirectional causal structure for almost half of the countries can be observed. The panel approach, on the other hand, provides some support for the existence of bidirectional causality between happiness and air pollution for the region taken as-a-whole.