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Does Foreign Aid Affect the Environment in Developing Economies?
B.Mak Arvin,Parviz Dabir-Alai,Byron Lew 중앙대학교 경제연구소 2006 Journal of Economic Development Vol.31 No.1
Preserving the environment is important from both national and international perspectives. Similarly, the provision of foreign assistance from richer to poorer nations is often seen as an imperative. However, there is a noticeable gap in research on how aid flows are linked to the environment in developing economies. Using the method of Granger causality, this paper explores the possible linkages. Results indicate that the external debt of a developing country bears upon the relationship in important ways. The second part of the paper entertains the possibility of spurious causality, tests for cointegration, and present additional results using an error-correction model.