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This study examines the impact of foreign aid on economic growth and poverty in Cambodia, Lao PDR, Myanmar, and Vietnam (CLMV). Results indicate a significant positive relationship between Official Development Assistance and Gross Domestic Product, while the impact on poverty is less consistent. The analysis highlights the importance of institutional quality, governance, and infrastructure, particularly access to electricity, in maximizing the benefits of foreign aid. Bayesian Panel Vector Autoregressive (BPVAR) model is employed for this study and the results underscore the potential of improved governance and effective monetary policies for sustaining economic growth and poverty reduction.

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The Relationship Among Foreign Aid, Poverty Reduction and Economic Growth in CLMV

  • 会议论文

  • 发表日期：

    2025年

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  • Ye Yint,
  • Anaspree Chaiwan,
  • Chukiat Chaiboonsri

摘要

This study examines the impact of foreign aid on economic growth and poverty in Cambodia, Lao PDR, Myanmar, and Vietnam (CLMV). Results indicate a significant positive relationship between Official Development Assistance and Gross Domestic Product, while the impact on poverty is less consistent. The analysis highlights the importance of institutional quality, governance, and infrastructure, particularly access to electricity, in maximizing the benefits of foreign aid. Bayesian Panel Vector Autoregressive (BPVAR) model is employed for this study and the results underscore the potential of improved governance and effective monetary policies for sustaining economic growth and poverty reduction.