ABSTRACT
Results from the initial model indicate that of the variables savings, investment, and export growth, only export growth is significantly related to economic growth. The direct relationship between aid and economic growth is found to be negative, but not significant. The results provide the basis for several interpretations of the relationships between economic growth and the variables aid, savings, investment and exports. Results from the analysis yielded only fragile results, with the exception of the variable savings aid (SA). The extreme-bounds analysis on SA yields a nearly robust result. The results strongly support both hypotheses as conclusively as is possible within the design of Donald Snyder’s model. The results offer strong support for “revisionists” who argued negative causation from aid to savings, and only mixed support for “revisionists critics” who argued that negative associations were from higher aid allocation to lower savings.
