Access Type

Open Access

Presentation Type

Oral Presentation

Start Date

April 2017

End Date

April 2017

Abstract

The research paper I will be presenting does an empirical study of the impact of foreign aid on life expectancy and GDP per capita in Latin America and the Caribbean using a panel dataset of 22 and 20 countries, respectively, dated from 1996 to 2014 to perform two distinctive regressions using the OLS method. In addition, an exploration of the impact of GDP per capita on life expectancy was conducted to determine whether there was a cause and effect phenomenon. The findings suggest that foreign aid does not seem to have a positive impact on either GDP per capita or life expectancy. However, GDP per capita is strongly correlated with life expectancy lengthening. Recommendations to policy makers and governments include: more investments in the education sector for human capital development, and more investments in sectors that will spur economic growth per capita, while focusing on creating an enabling environment and reducing corruption so that foreign aid can be leveraged to create growth.

Faculty Mentor

Dr. Michael P. Craig; Dr. Gerald Prante; Dr. Michael Schnur.

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Included in

Economics Commons

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Apr 5th, 2:00 PM Apr 5th, 2:15 PM

Foreign Aid Allocation and Impact in Latin America and the Caribbean (LAC): A Cross-Country Analysis of Foreign Aid impact on GDP Per Capita and Life Expectancy.

The research paper I will be presenting does an empirical study of the impact of foreign aid on life expectancy and GDP per capita in Latin America and the Caribbean using a panel dataset of 22 and 20 countries, respectively, dated from 1996 to 2014 to perform two distinctive regressions using the OLS method. In addition, an exploration of the impact of GDP per capita on life expectancy was conducted to determine whether there was a cause and effect phenomenon. The findings suggest that foreign aid does not seem to have a positive impact on either GDP per capita or life expectancy. However, GDP per capita is strongly correlated with life expectancy lengthening. Recommendations to policy makers and governments include: more investments in the education sector for human capital development, and more investments in sectors that will spur economic growth per capita, while focusing on creating an enabling environment and reducing corruption so that foreign aid can be leveraged to create growth.