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Summarize Papanek's findings on the empirical relationship between domestic savings and foreign aid. How does this work undermine the savings gap justification for foreign aid?
Source: Aid, Foreign Private Investment, Savings and Growth in Less Developed Countries by Gustav Papanek.
The reason I'm asking is that I get the impression Papanek thinks foreign aid has a negative impact on domestic savings but that's not what other students are saying. I find this question very confusing. Thanks for helping!
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