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There is a continuously debate on whether foreign aid helps or deters the economic growth of a developing country. According to the traditional pro aid view, foreign aid increases the economic growth. On the other hand, the traditional anti aid view claims that foreign aid is detrimental to...
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Existing literature repeatedly documented a strong correlation between trade and growth. It has also shown a causal effect of imports (though not necessarily exports) on growth in simultaneous equation models but to a lesser extent in Granger-causality tests. Export and import taxes have...
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Several empirical papers have shown that international trade has a positive causal effect on a country's GDP or growth rate. A common conclusion from these results is that a free trade policy will increase a country's GDP. This comment does not dispute the empirical findings per se but questions...
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