The impact of official development assistance on import capacity in Guyana (1960-2002)

Hector C. Butts, Ivor S. Mitchell
2012 Public and Municipal Finance  
The main finding of this study is that official development assistance supported sustainability of import capacity while aid as a percent of gross capital formation hindered it in Guyana over the period of 1960-2002. The paper utilized the bounds test for co-integration in the ARDL framework to identify the shortrun and long-run information in the model. The elasticities with respect to official development assistance and aid as a percent of gross capital formation are the principal
more » ... of aggregate import for Guyana in both the short-run and longrun. The study presents a greater understanding of the import capaity and the impact of institutions in the generation of foreign exchange. The authors recommend that leaders in both develop and developing countries harmonize policy on coherence, coordination and cooperation for allocation and disbursement of ODA in developing countries to improve its effectiveness. The superior performance of the new variables suggests further research can improve our understanding of import capacity in developing countries.
doaj:1b00b47caf8349cfbf4fa5da9895514d fatcat:2qz6mftxevgall7mabqtxzkd64