Humanitarian Aid and Economic Growth: A Panel Data Analysis of ASEAN, China and India

This study investigates the relationship between humanitarian aid and economic growth, guided by economic theory, using panel data analysis. Humanitarian aid, which refers to voluntary and unpaid assistance aimed at improving societal welfare, has gained significant attention from both academics and policymakers. Economic theory offers conceptual frameworks for understanding the driving forces, incentives, and outcomes of human actions, including voluntary efforts. The study employs a panel dataset that includes five ASEAN countries, Malaysia, Indonesia, Singapore, Thailand, and the Philippines, along with two significant regional players, China and India, spanning from 1991 to 2023. These countries, while not members of ASEAN, are pivotal to the broader Southeast Asian region's economic and humanitarian landscape, which justifies their inclusion in this analysis. The relationship between humanitarian aid and economic growth is examined through the Pooled Mean Group (PMG) estimation technique. Key findings suggest that humanitarian aid has a positive impact on economic growth, with variations across different countries within the region. The results also highlight areas of agreement and disagreement within the academic research on the intersection of humanitarian efforts and economic development, pointing to opportunities for further exploration. This study enhances understanding of the role of voluntary contributions in economic systems, offering valuable insights for policymakers, practitioners, and researchers seeking to leverage humanitarian aid to foster societal well-being and economic growth.