Does aid mitigate the effect of vulnerability on economic growth in small island developing states?
Type de matériel :
51
The aim of this paper is to examine the effectiveness of official development assistance in small island developing states (SIDS). Over the period 2002– 2020, thirty-five SIDS in three regions have been studied: Africa, Indian Ocean, Mediterranean, and South China Sea (AIMS), the Caribbean, and the Pacific. The econometric results obtained using the GMM method show that aid is more effective in the most vulnerable SIDS. More specifically, aid is more effective in the Pacific than in the Caribbean and AIMS. This result remains robust when control variables are added to the model. The results of this study call for more international funding to strengthen the resilience of SIDS. JEL Classification: F35, O11, O40, C21, I3
Réseaux sociaux