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This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient even without fixed costs, and the inefficiency increases in the equality of donors'...
Persistent link: https://www.econbiz.de/10013098604
This paper describes some policy instruments set up by the IMF and the European Union in order to provide financial assistance to developing countries whose economies are affected by exogenous shocks from exports side. After briefly reviewing the IMF's CFF and the EU's STABEX, the paper presents...
Persistent link: https://www.econbiz.de/10013107577
What happens to foreign aid when developing countries get richer?In this paper, I first show that, since the mid-1990s, many recipients of official development assistance have been experiencing sustained economic progress and that they are projected to do so. I proceed with presenting historical...
Persistent link: https://www.econbiz.de/10013085158
Developing countries requests for technical and financial assistance in the Doha Round negotiations prompted the WTO to collaborate with donors and development agencies. This led to the Aid for Trade Initiative. However, no attempt at increasing coherence between trade policy, aid policy, and...
Persistent link: https://www.econbiz.de/10013089999
-region similarities when developing policies on the incentives for foreign investment and market-based economic growth …
Persistent link: https://www.econbiz.de/10013090288
The paper explores the relationships between economic freedom on the one side and development aid and IMF credit as approximation for conditional aid on the other side. After a short review of current literature, the paper develops a simple panel regression model to evaluate the relationships....
Persistent link: https://www.econbiz.de/10013068789
after a negative GDP growth shock of 1 percent, aid budgets fall by as much as 8 percent. At current aid levels, that is …
Persistent link: https://www.econbiz.de/10013159908
studies. One factor that has been analyzed in 30 of these studies is growth in the recipient country. A priori the effect may …-analysis of the 211 growth-aid estimates found in the 30 empirical studies. Additionally, we present new evidence using a panel … that growth does generate aid, so the dominating sign is positive. This result is driven partly by the large development …
Persistent link: https://www.econbiz.de/10012726211
This paper proposes that aid flowing to smaller (less populous) countries has a negative impact on the quality of institutions in terms of performance and policy as opposed to that flowing to larger countries, where evidence suggests that the impacts are positive. The analysis here suggests that...
Persistent link: https://www.econbiz.de/10012729409
other MDGs, most notably primary education, there is a considerable gap between donor rhetoric and actual aid allocation …
Persistent link: https://www.econbiz.de/10012734506