FOREIGN AID AND ECONOMIC GROWTH : Evidence from three Southeast Asian developing countries

Abstract: Previous studies show ambiguous results on how aid affect growth. In order to find out if aid has a positive effect on growth in Southeast Asia, I study Indonesia, Malaysia and Philippines during 1990-2019. By using the Mankiw-Romer-Weil version of Solow model, I find aid has a negative long-term effect and no short-term effect on growth.