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    Effect of foreign aid on income distribution
    (2001-03) Lo, Louis Marshall; Mejia, Paul Michael; Miranda, Casimiro
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    The impact of foreign aid on the human development index: a cross-regional study of Asia, Latin America, and Africa
    (2009-11) Chan, Justine Ranier S.; Tecson, Gwendolyn
    The paper aims to measure and compare the effectiveness of foreign aid on development in Asia, Latin America and Africa as measured by the Human Development Index. The study investigates if aid is really doing its job in improving the welfare of developing countries in terms of its people's income, health and education which are all captured in the Human Development Index. Also, it tries to provide an answer to the debate between the aid optimists and pessimists if aid is beneficial or not. In order to do this, 20 countries from Asia, 10 from Latin America, and 33 from Africa were selected among the medium and low human development countries as classified by the United Nations Development Programme in its Human Development Report. The author then conducted a panel data regression for each region. The results of the regression analysis showed varied results for the 3 regions. Specifically, the effect of aid on HDI was found to be positive in Latin America and Africa. However, the effect of aid was insignificant for Asia. Therefore, it can be said that there is no one conclusive answer to whether aid is effective or not. The effectiveness of foreign aid is different across regions and will most likely be dependent on donor and recipient characteristics.
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    An empirical analysis on the direction of causality between official development assistance and economic growth for the Philippine economy
    (2009-10) De Jesus, Christopher F.
    This paper presents an empirical analysis of the relationship between the inflows of Official Development Assistance and Economic Growth for the case of the Philippines. First a small explanation of what Foreign Aid is in terms Official Development Assistance is presented followed by the section explaining the experience of the Philippine economy with Official Development Assistance for the past seven years and a review of the literature concerning Aid. The Philippines is shown to substantially receive Official Development Assistance from its main donors. Actual data from 1970 up to 2006 is then used in order to estimate the aid-growth equation for the Philippines. First a neoclassical production function is obtained and then subjected to different model tests for verification. And then following the heels of a previous study conducted by Rukmani Gounder on the Solomon Islands and on Fiji, a standard Granger Causality Test is employed in order to examine the direction of causality between Official Development Assistance and economic growth, here measured in terms of the annual growth rate of Gross Domestic Product. The results of the study show that in the case of the Philippine economy, ODA inflows (measured as a fraction of annual GOP) do not Granger-cause the annual growth rate of the country's Gross Domestic Product, and in fact it is the other way around- it is the annual growth rate of National Income in terms of Gross Domestic Product which Granger- causes the annual inflow of Official Development Assistance measured as the ratio of annual ODA to annual GDP. Conclusively, a few recommendations are given in accordance with the findings of the study.
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    The motivations of aid allocation to developing countries
    (1996-03) Castillo, Ma. Rowena Z.; Ongelico, Grace K.