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Examination of the Impact of Foreign Aid on Developing Countries

Examination of the Impact of Foreign Aid

4 November 2014

Dr Anna von Reibnitz, from the Research School of Finance, Actuarial Studies and Statistics, undertook a study for the Department of Foreign Affairs and Trade (DFAT) to examine the size and impact over time of global Official Development Assistance (ODA) and Foreign Direct Investment (FDI) on developing countries. Countries were grouped by national income and region, with additional individual case studies conducted on the ten countries that accounted for the largest share of Australia's ODA in 2012-2013. the study helped uncover fresh insights into the connections between these financing sources and development outcomes. Dr von Reibnitz looked for links between the selected economic inputs (ODA and FDI) and outcomes using a range of economic growth and socioeconomic indicators. The report she produced formed input to a re-examination of the Government's approach to development cooperation and finance, with the aim of ensuring that its future strategy addresses contemporary challenges and structures.

For more information, please contact Dr Anna von Reibnitz

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