The Two-Gap Model suggests that the Poor countries have to rely on the foreign resources to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign resources like FDI (Foreign Direct Investment), External loans & Credit, technical assistance,...

Global flows of Official Development Assistance are large and there is a large literature devoted to testing the effectiveness of these large flows. While among the poorest and the top recipients of foreign aid, Small Island Developing States (SIDS) are usually left out in the aid effectiveness...

The issue of foreign aid dependency in African countries remains controversial among policy makers. So far, there is no consensus on aid effectiveness and the resulting policy prescriptions have been conflicting. The Euro zone which provides the bulk of foreign aid to developing countries, is...

Using panel data for the period of 1975-2011, this study attempts to answer the question of whether the quantity or quality of foreign aid matters to economic growth of least developed countries (LDCs). Quality effects are captured using different specifications of both bilateral and...

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...

This paper provides a critical review of aid effectiveness in Bangladesh. Focusing on the contributions of major donors, the paper uses a triangulation approach to assess aid effectiveness, based on the evaluations of donors and recipients. This approach was motivated by the deficiencies of the...

Growing criticism of inefficient development aid demanded new planning instruments of donors, including international NGOs (INGOs). A reorientation from isolated project-planning towards holistic country concepts and the increasing rationality of a result-orientated planning process were seen as...

When the longest-serving African dictator, Togo's Gnassingbé Eyadéma, died unexpectedly in February 2005 after 38 years of autocratic rule, Togo became a test case for indigenous democratisation efforts of African states. However, it soon became clear that a change of regime through the ballot...

This paper provides a critical review of aid effectiveness in Bangladesh . It focuses on the contributions of three major, high-profile donors: the World Bank, the Asian Development Bank (ADB), and the Government of Japan (GOJ). In assessing aid effectiveness, the paper uses a qualitative...

Recent studies and approaches to foreign aid effectiveness have concentrated on its impact on economic growth. But aid’s main goal is poverty reduction, not economic growth. In this paper, aid’s impact on poverty, growth, and inequality are analyzed. A 97 country sample is used for the...