TY - JOUR
T1 - Foreign aid and economic growth in Cameroon
T2 - Evidence from cointegration tests
AU - Murthy, Vasudeva N.R.
AU - Ukpolo, Victor
AU - Mbaku, John M.
PY - 1994/10/1
Y1 - 1994/10/1
N2 - Mbaku (1993, 1994) presents empirical evidence to support the hypothesis that in Cameroon, during 1971-90, foreign aid had no impact on economic growth. In this note, we apply the recent technique of unit-root testing and Johansens maximum likelihood procedure to show, on the contrary, that foreign aid had a positive contribution to economic growth in Cameroon during the period under study. We attribute the differences in the results to the differences in methodology, and the implied optimal lag structure in our study. We contend that cointegration tests are warranted in studies of this nature, before any structural analysis and policy implications of the model, are derived.
AB - Mbaku (1993, 1994) presents empirical evidence to support the hypothesis that in Cameroon, during 1971-90, foreign aid had no impact on economic growth. In this note, we apply the recent technique of unit-root testing and Johansens maximum likelihood procedure to show, on the contrary, that foreign aid had a positive contribution to economic growth in Cameroon during the period under study. We attribute the differences in the results to the differences in methodology, and the implied optimal lag structure in our study. We contend that cointegration tests are warranted in studies of this nature, before any structural analysis and policy implications of the model, are derived.
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U2 - 10.1080/135048594357916
DO - 10.1080/135048594357916
M3 - Article
AN - SCOPUS:0008423058
VL - 1
SP - 161
EP - 163
JO - Applied Economics Letters
JF - Applied Economics Letters
SN - 1350-4851
IS - 10
ER -