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We raise the hypothesis that aid specifically targeted at economic infrastructure helps developing countries attract … higher FDI inflows through improving their endowment with infrastructure in transportation, communication, energy and finance … allocation of sector-specific aid, the determinants of infrastructure, and the determinants of FDI. We find fairly strong and …
Persistent link: https://www.econbiz.de/10010394325
The effects of foreign aid on the endowment of recipient countries with infrastructure have received surprisingly …-in-difference-in-differences estimations, with the treatment defined as steep increases in aid for infrastructure since a distinct change in donor behavior in … 2005. Mitigating endogeneity concerns in this way, we consistently find aid for infrastructure to be ineffective in …
Persistent link: https://www.econbiz.de/10011444386
post-conflict aid differs between specific sectors. Our focus is on social and economic infrastructure which is most likely … evidence that post-conflict aid is effective in improving social infrastructure. In contrast, aid appears to be ineffective in … improving economic infrastructure. …
Persistent link: https://www.econbiz.de/10011563312
We construct comprehensive and comparable indices on the most relevant components of economic infrastructure. An … period 1990-2010. We map major findings from the new indices on infrastructure and provide country rankings, which we also … compare with subjective assessments of infrastructure in the World Economic Forum’s Global Competitiveness Report. Finally, we …
Persistent link: https://www.econbiz.de/10010361439
We address the question of whether foreign aid helps attract foreign direct investment (FDI). This could be achieved if well targeted aid removed critical impediments to higher FDI inflows. In particular, test the hypothesis that aid for education is an effective means to increase FDI flows to...
Persistent link: https://www.econbiz.de/10009671654
country at both stages of their allocation of aid for economic infrastructure and productive sectors. By contrast, evidence … for export competition driving aid allocation is lacking for more altruistic donors and for aid in social infrastructure. …
Persistent link: https://www.econbiz.de/10010190198
Recent studies offer an ambiguous picture on the effectiveness of foreign aid in strengthening the export capacity of recipient countries. Moreover, the literature on aid for trade (AfT) has often neglected that exporters in the donor countries may be among the main beneficiaries. We hypothesize...
Persistent link: https://www.econbiz.de/10009762358
Our empirical estimations indicate that aid-for-trade granted by OECD donors strengthens the trade relations of recipient countries with other developing countries. By focusing on South-South trade we mitigate endogeneity concerns that have plagued analyses of trade between recipients and donors...
Persistent link: https://www.econbiz.de/10010347360
We argue that donors could improve the effectiveness of foreign aid by pursuing complementary and coherent non-aid policies. In particular, we hypothesize that aid from donors that are open to immigration has stronger growth effects than aid from closed donors. We estimate the aid-growth nexus...
Persistent link: https://www.econbiz.de/10010467104
Political proximity between donor and recipient governments may impair the effectiveness of aid by encouraging favoritism. By contrast, political misalignment between donor and recipient governments may render aid less effective by adding to transaction costs and giving rise to incentive...
Persistent link: https://www.econbiz.de/10010128857