POVERTY ALLEVIATION IN DEVELOPING AND UNDERDEVELOPED COUNTRIES. DO FOREIGN CAPITAL AND ECONOMIC FREEDOM MATTER?
研究了1995-2018年71个发展中国家和欠发达国家的外国资本（外国直接投资、外援）和经济自由对减贫的作用，发现外国直接投资长期减贫但短期加剧贫困，外援作用不显著，经济增长和经济自由至关重要。
Our study focuses on the role of foreign capital which includes foreign direct investment, foreign aid, and economic freedom in poverty alleviation in developing and underdeveloped countries by using panel data from 1995 to 2018 for 71 countries. In the pursuit of achieving our objective, we employed several econometric techniques such as dynamic ordinary least square, fully modified ordinary least square, dynamic fixed effect, and pooled mean group regression methods. Furthermore, we performed the Granger causality test, impulse response function, and variance decomposition analysis. In our long-run estimations, we found that foreign direct investment could significantly alleviate poverty but increases poverty in the short run. Instead, foreign aid plays no significant role in poverty alleviation. Moreover, economic growth and economic freedom are essential as our findings consistently exhibited that they play a crucial role in poverty alleviation. We also found bidirectional causality between poverty alleviation and population growth, while a unidirectional causal linkage was found from poverty alleviation to foreign aid. We conclude that policymakers should look at a new paradigm of developmental assistance, and governments should also create an aiding environment for foreign investment to support their growth plan.