The Contribution of Foreign Aid and Foreign Direct Investment to Poverty Reduction

This thesis examines the relationship between foreign aid and foreign direct investment, on the one hand, and poverty reduction, on the other hand. Using various panel data sets and panel data estimators, this thesis demonstrates that the effectiveness of foreign aid in poverty reduction depends largely on the measure of aid, the type of data, and the method of analysis employed. In addition, this analysis shows that FDI is most likely unrelated to poverty reduction