Business

Aid money providing bang for export bucks

New economic modelling shows Australia increases its exports from investing in foreign aid.

Every dollar in foreign aid Australia has given to Asia has resulted in $7.10 in Australian exports.

That's the key finding from new economic modelling from Australian National University researchers.

Sabit Otor and Matthew Dornan's study looked at export data and foreign aid levels between 1980-2013.

Dr Dornan said modelling showed foreign aid had resulted in economic benefits for Australia, in addition to poverty alleviation.

"It's clear Australian aid is serving our national interests through growing economies in our neighbourhood, which then provides benefits to Australian exporters," he said.

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