Foreign Aid Allocation, Governance, and Economic Growth

Foreign Aid Allocation, Governance, and Economic Growth PDF Author: Kamil Akramov
Publisher:
ISBN: 9780896298095
Category : Developing countries
Languages : en
Pages : 3

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Book Description
Foreign aid to developing countries is a subject of heated debate among politicians, economists, and development specialists. Does aid promote economic growth and reduce poverty? Some argue that foreign aid has no effect on growth and may sometimes even undermine growth in aid recipient countries. Others suggest that foreign aid positively influences economic growth. Still others suggest that foreign aid has a positive impact on growth but this impact is conditional on a good institutional and policy environment. This debate has high stakes, given that foreign aid in the form of official development assistance (ODA) by leading donor nations reached over US$120 billion in 2010, the highest level ever recorded. This study contributes to the debate by taking a different approach from conventional analyses of the aid–growth relationship. Analysis of the aid–growth relationship shows no significant connection between aggregate aid and per capita GDP growth. Rather than treating ODA as a single category, the study disaggregates it into several different categories, based on which sector of a recipient’s economy the ODA is meant to help or promote. The study investigates whether changes in sectoral allocation of ODA influence the effectiveness of foreign aid in promoting economic growth. Although this is not an entirely new direction for research in this area, little is known about the possible causal impacts of aid to different sectors on economic growth. The results of the study are presented in Foreign Aid Allocation, Governance, & Economic Growth, recently published by the University of Pennsylvania Press for IFPRI.

Foreign Aid Allocation, Governance, and Economic Growth

Foreign Aid Allocation, Governance, and Economic Growth PDF Author: Kamil Akramov
Publisher:
ISBN: 9780896298095
Category : Developing countries
Languages : en
Pages : 3

Get Book Here

Book Description
Foreign aid to developing countries is a subject of heated debate among politicians, economists, and development specialists. Does aid promote economic growth and reduce poverty? Some argue that foreign aid has no effect on growth and may sometimes even undermine growth in aid recipient countries. Others suggest that foreign aid positively influences economic growth. Still others suggest that foreign aid has a positive impact on growth but this impact is conditional on a good institutional and policy environment. This debate has high stakes, given that foreign aid in the form of official development assistance (ODA) by leading donor nations reached over US$120 billion in 2010, the highest level ever recorded. This study contributes to the debate by taking a different approach from conventional analyses of the aid–growth relationship. Analysis of the aid–growth relationship shows no significant connection between aggregate aid and per capita GDP growth. Rather than treating ODA as a single category, the study disaggregates it into several different categories, based on which sector of a recipient’s economy the ODA is meant to help or promote. The study investigates whether changes in sectoral allocation of ODA influence the effectiveness of foreign aid in promoting economic growth. Although this is not an entirely new direction for research in this area, little is known about the possible causal impacts of aid to different sectors on economic growth. The results of the study are presented in Foreign Aid Allocation, Governance, & Economic Growth, recently published by the University of Pennsylvania Press for IFPRI.

Governance and Foreign Aid Allocation

Governance and Foreign Aid Allocation PDF Author: Kamiljon T. Akramov
Publisher:
ISBN:
Category : Developing countries
Languages : en
Pages : 181

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Book Description
This dissertation addresses foreign aid allocation and development effectiveness. This is an important issue because each year donors transfer tens of billions of dollars in foreign aid to developing countries. Moreover, based on new pledges and greater commitments to development assistance from donor nations, there is a possibility of scaling up of foreign development assistance far beyond the current levels. From the donors' perspective, the commitment to increase aid flows to developing countries is only the starting point. This, in turn, raises issues regarding the role of the donors' aid allocation policies in ensuring aid effectiveness. This dissertation examines some important propositions that relate governance to foreign aid allocation and effectiveness. The author unravels the critical heterogeneous impacts of governance and different aid categories on development outcomes. One striking finding suggests that aid to the production sector can be effective in promoting growth in countries with a low quality of governance. However, aid allocated to economic infrastructure is efficient in countries with medium and high quality of governance.

Foreign Aid Allocation, Governance, and Economic Growth

Foreign Aid Allocation, Governance, and Economic Growth PDF Author: Kamiljon T. Akramov
Publisher: International Food Policy Research Institute
ISBN: 9780812244656
Category : Business & Economics
Languages : en
Pages : 184

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Book Description
How important is foreign aid in fostering economic growth in developing countries? Does it help recipient countries, hurt them, or have little effect either way? Foreign Aid Allocation, Governance, and Economic Growth investigates this issue by looking at foreign aid by sector rather than treating it as an aggregate amount. Aid can be allocated to a recipient's production sectors (such as agriculture, manufacturing, or mining), economic infrastructure (such as transport, storage, or communications networks or power generation facilities), or social sectors (such as education or healthcare). This book differentiates among various channels through which each of these three categories of foreign aid affects economic growth. The findings suggest that economic aid, including aid to production sectors and economic infrastructure, contributes to economic growth by increasing domestic investment. Aid to social sectors, however, does not appear to have a significant impact on human capital (measured by school enrollment) and economic growth. This study also assesses the degree to which the quality of democratic governance in a recipient country influences foreign aid's effectiveness and finds that democracy is no guarantee of aid effectiveness. In fact, economic aid to less democratic countries can lead to better economic growth, at least initially, provided the aid recipients secure property rights and allow capital accumulation. Although further research into the question is necessary, Foreign Aid Allocation, Governance, and Economic Growth suggests that aid targeted to increasing domestic investment might be an effective means of fostering economic growth in less developed countries.

The Pattern of Aid Giving

The Pattern of Aid Giving PDF Author: Eric Neumayer
Publisher: Routledge
ISBN: 1134428782
Category : Business & Economics
Languages : en
Pages : 130

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Book Description
Practically all donor countries that give aid claim to do so on the basis on the recipient's good governance, but do these claims have a real impact on the allocation of aid? Are democratic, human rights-respecting, countries with low levels of corruption and military expenditures actually likely to receive more aid than other countries?Using econo

States, Markets and Foreign Aid

States, Markets and Foreign Aid PDF Author: Simone Dietrich
Publisher: Cambridge University Press
ISBN: 1316519201
Category : Business & Economics
Languages : en
Pages : 295

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Book Description
Explores the different choices made by donor governments when delivering foreign aid projects around the world.

Lessons on Foreign Aid and Economic Development

Lessons on Foreign Aid and Economic Development PDF Author: Nabamita Dutta
Publisher: Springer Nature
ISBN: 3030221210
Category : Business & Economics
Languages : en
Pages : 302

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Book Description
A response to the pressing need to address and clarify the substantial ambiguity within current literature, this edited volume aims to deepen readers’ understanding of the impact of foreign aid on development outcomes based on the latest findings in research over the past decade. Foreign aid has long been seen as one of two extremes: either beneficial or damaging, a blessing or a curse. Consequently, many readers perceive aid’s effectiveness based on the work of scholars who are assessing the impact of aid from one of two antithetical perspectives. This book takes a different approach, shedding light on recent research that can deepen our understanding of the complex relationship between aid and its aftereffects. Drawing from an extensive set of studies that have explored micro and macro impacts of foreign aid for recipient nations, chapter authors highlight more layered and nuanced findings, with a focus on donor characteristics, political motives, and an evaluation of aid projects and their effectiveness, including the differential impact based on type of aid. This volume is the first of its kind to unpack aid as a complex rather than a unitary concept and explore the wide areas of grey that have long enshrouded foreign aid.

Foreign Aid and Foreign Policy

Foreign Aid and Foreign Policy PDF Author: Louis A. Picard
Publisher: Routledge
ISBN: 1317470397
Category : Business & Economics
Languages : en
Pages : 432

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Book Description
This timely work presents cutting-edge analysis of the problems of U.S. foreign assistance programs - why these problems have not been solved in the past, and how they might be solved in the future. The book focuses primarily on U.S. foreign assistance and foreign policy as they apply to nation building, governance, and democratization. The expert contributors examine issues currently in play, and also trace the history and evolution of many of these problems over the years. They address policy concerns as well as management and organizational factors as they affect programs and policies. "Foreign Aid and Foreign Policy" includes several chapter-length case studies (on Iraq, Pakistan, Ghana, Haiti, and various countries in Eastern Europe and Africa), but the bulk of the book presents broad coverage of general topics such as foreign aid and security, NGOs and foreign aid, capacity building, and building democracy abroad. Each chapter offers recommendations on how to improve the U.S. system of aid in the context of foreign policy.

Governance and Aid Allocation in the International Development Association (IDA)

Governance and Aid Allocation in the International Development Association (IDA) PDF Author: Claire Teresa McCarville Markgraf
Publisher:
ISBN:
Category :
Languages : en
Pages : 90

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Book Description
This paper examines the relationship between governance and the foreign aid allocation of a World Bank agency, the International Development Association. In particular, the study investigates whether this major multilateral program's financial support for the development of the world's poorest countries consistently prioritizes good governance. A new dataset from the first decade of the twenty-first century, 2003-12, is used in three econometric estimation models to determine whether the quality of governance in recipient countries has had implications for aid allocation decisions. As in much of the literature in this area, the results are mixed. This finding itself raises important questions both about the relevance of a country's governance to aid allocation decisions and about the usefulness of good governance as a metric by which aid organizations are judged.

Aid Allocation, Selectivity, and the Quality of Governance

Aid Allocation, Selectivity, and the Quality of Governance PDF Author: Mohammad In'airat
Publisher:
ISBN:
Category :
Languages : en
Pages : 6

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Book Description
The introduction of good governance in the economic growth and development agenda in the last two decades, along with the failure of aid conditionality to produce positive growth results, motivated expost selectivity instead of the ex-ante conditionality as a new approach to aid allocation. This paper aims to explore whether aid selectivity on the basis of the quality of governance is employed as a criterion in foreign aid allocation. The paper uses different instrumental variables as estimators to analyze the determinants of aid allocation over the period 2001-2010. The results produced strong evidence that countries with good governance are given preferential treatment by donors. Among the six governance indicators, it seems that voice and accountability and control of corruption are critical in the aid allocation decision.

Foreign Aid, Its Defense and Reform

Foreign Aid, Its Defense and Reform PDF Author: Paul Mosley
Publisher: University Press of Kentucky
ISBN: 9780813133010
Category : Political Science
Languages : en
Pages : 286

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Book Description