Naoyuki Yoshino was positive to the approach taken in the paper but had some concerns on the econometric specification. He thought that inclusion of more observable variables might give a better sense for the robustness of the results. Wei Yingqi thought that aid in one year is dependent on aid in previous years, which might be an econometric problem. According to Yingqi, possible endogeneity problems are also present, which might be difficult to solve but should at least be acknowledged.
Yingqi also thought that the link between aid and FDI is becoming increasingly important and something that would be worth a closer look. More exactly, multinational firms often conduct economic activities in developing countries, which are financed through foreign aid. Lars Oxelheim agreed and argued that a similar strong link can be found between export and aid. It is not uncommon for countries to give aid as a way to...