Munich Personal RePEc Archive

Foreign aid, foreign direct investment and domestic investment nexus in landlocked economies of Central Asia

Arazmuradov, Annageldy (2011): Foreign aid, foreign direct investment and domestic investment nexus in landlocked economies of Central Asia.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_36881.pdf

Download (710kB) | Preview

Abstract

This paper is about relationship between official development assistance, foreign direct investment and domestic investment in landlocked and less studied young economies of Central Asia. It is important for donor countries to understand whether their investments induce foreign direct investment or vise versa. If so, it creates ground for public-private partnership. If not, then it points of reassessing mechanisms of aid architecture. For public multinational enterprises is important to gain public opinion and further explore new markets. For governments it is crucial to devise policies to favor foreign transfers that bring better welfare improvements. Our results from seemingly unrelated regression for total regional sample demonstrate that (1) foreign aid and FDI are related. (2) we found crowding out effect: domestic investments decrease foreign aid inflows inelastically though. However, on country level these results are different. We conclude that there is an indication for public-private investment partnership.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.