Showing 1 - 10 of 13
The link between foreign aid and economic growth remains a controversial issue in the literature, and a large share of the disagreement could be explained by differences in the data employed. Using GDP data from three different versions of the Penn World Table and the World Development...
Persistent link: https://www.econbiz.de/10011375893
This paper provides a critical analysis of the growth regressions in Burnside and Dollar (2000). First, we analyze the relation between aid and government expenditure in a modified neoclassical growth model. We find that while good policies spur growth they may at the same time lead to...
Persistent link: https://www.econbiz.de/10011532941
This paper deals with the effectiveness of several alternative models of aid allocation in terms of poverty reduction. We use a model that admits the presence of diminishing returns to aid in the output and poverty functions. We shall discuss the impact of aid on poverty in a single country,...
Persistent link: https://www.econbiz.de/10011532948
This paper takes a fresh look at three issues in the aid effectiveness debate. First, we assess the theoretical case for foreign aid. Using an endogenous growth version of the standard overlapping generations model, we show that aid can be an effective policy tool in spurring growth in poor...
Persistent link: https://www.econbiz.de/10011533640
Comparing aid flows in the 1990s with those from the 1970s make it clear that there are now many more countries receiving what may be termed "high aid" (say in excess of 30 percent of GNP) and that there has emerged a group of countries receiving very high aid. Whilst never formally considered...
Persistent link: https://www.econbiz.de/10011533943
Theoretical predictions and empirical evidence on the impact of foreign aid and fiscal policy on growth are mixed. This paper examines the effect of fiscal variables (government expenditure and revenue) and aid on growth using annual time series data for Kenya over the period 1964 - 2002....
Persistent link: https://www.econbiz.de/10011534230
This paper models the inter-temporal allocation of bilateral foreign development aid to developing countries. A formal theoretical framework is developed, in which aid is treated as a private good of the donor country bureaucratic group responsible for bilateral aid allocation. This model is...
Persistent link: https://www.econbiz.de/10011534290
This paper presents an empirical analysis of the relationship between foreign aid inflows and the real exchange rate in 12 countries of the CFA Franc zone. Using dynamic panel analysis we find that foreign aid inflows do not generate Dutch disease effects in these countries. In terms of policy...
Persistent link: https://www.econbiz.de/10011534955
This paper looks at interactions between foreign development aid, economic reform and public sector fiscal behaviour. It proposes a model of the public sector fiscal response to aid inflows, which allows for changes in structural relationships due to an exogenously imposed program of economic...
Persistent link: https://www.econbiz.de/10011534991
There is a widespread perception among academic researchers and aid practitioners alike that empirical cross-country analysis fails to find any significant link between aid flows and growth, and that aid is successful only when associated with good policies in the recipient countries. These...
Persistent link: https://www.econbiz.de/10011535199