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Chinese aid comes with few strings attached, allowing recipient country leaders to use it for domestic political purposes. The vulnerability of Chinese aid to political capture has prompted speculation that it may be economically ineffective, or even harmful. We test these claims by estimating...
Persistent link: https://www.econbiz.de/10012033099
In this paper, foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent-seeking as opposed to productive activities. We construct a model of a small growing open economy that distinguishes two effects from foreign transfers: (i) a direct positive...
Persistent link: https://www.econbiz.de/10011402546
We use an excludable instrument to test the effect of foreign aid on economic growth in a sample of 96 recipient countries over the 1974-2009 period. We interact donor government fractionalization with a recipient country's probability of receiving aid. The results show that fractionalization...
Persistent link: https://www.econbiz.de/10011343084
We investigate the effects of short-term political motivations on the effectiveness of foreign aid. Donor countries ́political motives might reduce the effectiveness of conditionality, channel aid to inferior projects or affect the way aid is spent in other ways, reduce the aid bureaucracyś...
Persistent link: https://www.econbiz.de/10009764394
In last few decades, Asian production networks have contributed significantly toward the rapid trade expansion and economic growth in East Asia. Developed Asia produces technology-intensive intermediate goods and capital goods and ships them to the People Republic of China (PRC) and ASEAN for...
Persistent link: https://www.econbiz.de/10009571750
We discuss the sustainability of Chinese high growth relative to growth experience elsewhere, and specifically Soviet … sustainability of high Chinese growth. -- China ; growth ; sustainability ; substitution elasticity …
Persistent link: https://www.econbiz.de/10009490607
countries, compatible with the sustainability of the processes concerning the Earth system. Mainly by focusing on the energy …
Persistent link: https://www.econbiz.de/10010223439
In recent years, sustainability has represented one of the most important policy goals explored in the environmental … specification, namely modified EKC (MEKC), we show that there is an inverted U-shape relationship between sustainability and human …. More interestingly, findings from the estimation show that EKC hypothesis, HD and sustainability are crucial to build …
Persistent link: https://www.econbiz.de/10010350476
We analyze the adoption of green technology in a dynamic economy affected by random shocks where demand spillovers are the main driver of technological improvements. Firms' beliefs and consumers' anticipations drive the path of the economy. We derive the optimal policy of investment subsidy and...
Persistent link: https://www.econbiz.de/10011657885
We examine how donor government ideology influences the composition of foreign aid flows. We use data for 23 OECD countries over the period 1960]2009 and distinguish between multilateral and bilateral aid, grants and loans, recipient characteristics such as income and political institutions,...
Persistent link: https://www.econbiz.de/10009764976