A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES

This article tests for causality relations among economic growth, official development assistance and openness-to-trade in low income countries. A recently developed Granger causality testing methodology based on Bayesian estimation of Seemingly Unrelated Regression (SUR) systems is employed in this study. Findings suggest a direct, unidirectional causality from official development assistance to economic growth in Chad, Madagascar, Democratic Republic of the Congo, the Gambia and Sierra Leone. In Chad and the Gambia, regression coefficients are found to be negative, suggesting a negative impact of foreign aid on economic growth. We therefore fail to provide clear-cut empirical evidence in support of aid effectiveness. Test results suggest unidirectional causality from opennessto- trade to economic growth in Chad, Democratic Republic of the Congo, the Gambia, Rwanda, Mali, Niger and Togo. In all these countries, except Democratic Republic of the Congo, the mean estimation beta is positive, providing some support for the trade-led growth hypothesis. For Chad, Rwanda, Malawi and Madagascar we find evidence for positive, unidirectional causality in reverse direction, that is, from economic growth to openness-to-trade. Finally, in Benin, Burkina Faso and Mali we find evidence that foreign aid inflows Granger-cause and enhance openness-to-trade.

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Bibtex @araştırma makalesi { muiibd665756, journal = {Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi}, issn = {2587-2672}, address = {}, publisher = {Marmara Üniversitesi}, year = {2020}, volume = {41}, number = {2}, pages = {503 - 515}, doi = {10.14780/muiibd.665756}, title = {A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES}, key = {cite}, author = {Tekin, Rıfat Barış} }
APA Tekin, R. B. (2020). A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES . Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi , 41 (2) , 503-515 . DOI: 10.14780/muiibd.665756
MLA Tekin, R. B. "A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES" . Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 41 (2020 ): 503-515 <
Chicago Tekin, R. B. "A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES". Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 41 (2020 ): 503-515
RIS TY - JOUR T1 - A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES AU - Rıfat BarışTekin Y1 - 2020 PY - 2020 N1 - doi: 10.14780/muiibd.665756 DO - 10.14780/muiibd.665756 T2 - Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi JF - Journal JO - JOR SP - 503 EP - 515 VL - 41 IS - 2 SN - 2587-2672- M3 - doi: 10.14780/muiibd.665756 UR - Y2 - 2019 ER -
EndNote %0 Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES %A Rıfat Barış Tekin %T A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES %D 2020 %J Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi %P 2587-2672- %V 41 %N 2 %R doi: 10.14780/muiibd.665756 %U 10.14780/muiibd.665756
ISNAD Tekin, Rıfat Barış . "A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES". Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 41 / 2 (Ocak 2020): 503-515 .
AMA Tekin R. B. A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2020; 41(2): 503-515.
Vancouver Tekin R. B. A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2020; 41(2): 503-515.
IEEE R. B. Tekin , "A NOTE ON CAUSALITY RELATIONS AMONG ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE AND TRADE OPENNESS IN LOW INCOME COUNTRIES", , c. 41, sayı. 2, ss. 503-515, Oca. 2020, doi:10.14780/muiibd.665756