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Effectiveness Of Aid On Sectorial Growth Evidence From Panel Data From Aid Recipient Developing Countries
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Book Synopsis Effectiveness of Aid on Sectorial Growth: Evidence from Panel Data from Aid Recipient Developing Countries by : T. Mekuria
Download or read book Effectiveness of Aid on Sectorial Growth: Evidence from Panel Data from Aid Recipient Developing Countries written by T. Mekuria and published by . This book was released on 2014 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: Drawing on panel data covering 91 aid recipient developing countries over the period of 1985-2011, we empirically examined the effect of Official Development Assistance (ODA) on the economic growth and sectorial growth. This thesis addressed three main research questions: what is the effect of ODA on the overall economic growth? What is the effect of ODA on the growth of manufacturing, service and agricultural sector? And finally what are the conditions that make ODA effective? To address these research questions, we run a regression analysis on a fixed effect model employing both OLS and 2SLS estimators. We employed 2SLS to account for endogenous nature of ODA. ODA is found to be endogenous in the aggregate and manufacturing sector while it is turned to be exogenous in the service and agricultural sector. This evidenced that omitted variable bias is the cause for endogenous nature of ODA in the model. In the first part of the analysis we run a regression of growth rate of GDP per capita on ODA and other appropriate explanatory variables. In the second part we run regression of the sectorial growth rate on ODA and the same explanatory variables. We also tested the hypothesis that ODA is more effective in those countries with good monetary policies and good level of democracy by including aid interaction with the conditioning variables as explanatory variables. Based on the regression result, our finding shows that a one percent increase in ODA will increase the growth rate of per capita GDP by 1.85 percent. Our result on the effect of aid on sectorial growth also suggested that ODA could be pretty effective in bringing growth in all the three sectors. Moreover, our results on aid conditionality also confirmed the empirical support for the hypothesis that aid is conditioned by the policy environment of aid recipient countries. In all specification, except agricultural sector where only democracy matters for aid effectiveness, the effectiveness of ODA is significantly less in countries with high level of inflation.
Download or read book Assessing Aid written by and published by World Bank Publications. This book was released on 1998 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.
Book Synopsis Poverty and Foreign Aid by : Abuzar Asra
Download or read book Poverty and Foreign Aid written by Abuzar Asra and published by . This book was released on 2005 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Takes a look at the issue od aid effectiveness from a macro perspective.
Book Synopsis The Oxford Handbook of the Social Science of Poverty by : David Brady
Download or read book The Oxford Handbook of the Social Science of Poverty written by David Brady and published by Oxford University Press. This book was released on 2016 with total page 937 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Oxford Handbook of the Social Science of Poverty builds a common scholarly ground in the study of poverty by bringing together an international, inter-disciplinary group of scholars to provide their perspectives on the issue. Contributors engage in discussions about the leading theories and conceptual debates regarding poverty, the most salient topics in poverty research, and the far-reaching consequences of poverty on the individual and societal level.
Download or read book Aid and Growth written by Raghuram Rajan and published by International Monetary Fund. This book was released on 2005-06-01 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the effects of aid on growth-- in cross-sectional and panel data--after correcting for the bias that aid typically goes to poorer countries, or to countries after poor performance. Even after this correction, we find little robust evidence of a positive (or negative) relationship between aid inflows into a country and its economic growth. We also find no evidence that aid works better in better policy or geographical environments, or that certain forms of aid work better than others. Our findings, which relate to the past, do not imply that aid cannot be beneficial in the future. But they do suggest that for aid to be effective in the future, the aid apparatus will have to be rethought. Our findings raise the question: what aspects of aid offset what ought to be the indisputable growth enhancing effects of resource transfers? Thus, our findings support efforts under way at national and international levels to understand and improve aid effectiveness.
Book Synopsis Handbook on the Economics of Foreign Aid by : Byron Lew
Download or read book Handbook on the Economics of Foreign Aid written by Byron Lew and published by Edward Elgar Publishing. This book was released on 2015-10-30 with total page 648 pages. Available in PDF, EPUB and Kindle. Book excerpt: It would be fair to say that foreign aid today is one of the most important factors in international relations and in the national economy of many countries – as well as one of the most researched fields in economics. Although much has been written on the subject of foreign aid, this book contributes by taking stock of knowledge in the field, with chapters summarizing long-standing debates as well as the latest advances. Several contributions provide new analytical insights or empirical evidence on different aspects of aid, including how aid may be linked to trade and the motives for aid giving. As a whole, the book demonstrates how researchers have dealt with increasingly complex issues over time – both theoretical and empirical – on the allocation, impact, and efficacy of aid, with aid policies placed at the center of the discussion. In addition to students, academics, researchers, and policymakers involved in development economics and foreign aid, this Handbook will appeal to all those interested in development issues and international policies.
Book Synopsis The Effect of Foreign Aid on Economic Growth in Developing Countries by : Semere Tesfamariam Kahsay
Download or read book The Effect of Foreign Aid on Economic Growth in Developing Countries written by Semere Tesfamariam Kahsay and published by . This book was released on 2020-03-06 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis The effectiveness of aid in promoting economic development in developing countries by : Weronika Krawczyk
Download or read book The effectiveness of aid in promoting economic development in developing countries written by Weronika Krawczyk and published by GRIN Verlag. This book was released on 2018-04-24 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2018 in the subject Politics - Topic: Development Politics, grade: 62.00, University of Reading, course: Development Finance, language: English, abstract: Ever year billions of dollars are channeled to developing countries to help them escape the poverty traps they are stuck in. According to the OECD statistics development aid given to the countries in need accounted for USD 142,6 billion in 2016. And, yet foreign aid remains a very controversial issue and its effectiveness has been highly debatable. The aim of this essay is to explore the reasons behind problematic aspects of development aid as well as to try to find a solution to them.
Book Synopsis Does Foreign Aid to the Energy Sector improve Electricity Supply in Developing Countries? by : Simeon Häfele
Download or read book Does Foreign Aid to the Energy Sector improve Electricity Supply in Developing Countries? written by Simeon Häfele and published by GRIN Verlag. This book was released on 2017-07-20 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2016 in the subject Economics - International Economic Relations, grade: 1,0, University of Bayreuth (RW Fakultät), course: Entwicklungsökonomik, language: English, abstract: This bachelor thesis examines whether foreign aid to the energy sector has a significant impact on the development of a country’s electricity sector by analysing the impact of aid disbursements to the energy sector on three different sector-specific outcome indicators in a fixed effects model. Besides, as heterogeneity of aid recipients might influence the effect, different regressions are run for low income, lower middle income and upper middle income countries. Results indicate that foreign aid to the energy sector affects electricity output positively and significantly, while not having an impact on generation capacity. The impact on electricity consumption per capita remains unclear. Furthermore, it seems to work more effectively in richer countries. This is robust to a set of sensitivity tests. Thus, the results emphasize the importance of disaggregating aid flows and the use of sector specific outcome variables in order to measure the impact of foreign aid.
Book Synopsis Foreign Aid Allocation, Governance, and Economic Growth by : Kamil Akramov
Download or read book Foreign Aid Allocation, Governance, and Economic Growth written by Kamil Akramov and published by . This book was released on 2012-11-30 with total page 3 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Book Synopsis Foreign Aid and Development by : Finn Tarp
Download or read book Foreign Aid and Development written by Finn Tarp and published by Routledge. This book was released on 2000-08-17 with total page 522 pages. Available in PDF, EPUB and Kindle. Book excerpt: Peter Hjertholm, Editorial Assistant Aid has worked in the past but can be made to work better in the future. In this important new book, leading economists and political scientists, including experienced aid practitioners, re-examine foreign aid. The evolution of development doctrine over the past fifty years is critically investigated, and conven
Book Synopsis Impact of Development and Humanitarian Aid on Economic Growth of Developing Countries by : S.D. Dagne
Download or read book Impact of Development and Humanitarian Aid on Economic Growth of Developing Countries written by S.D. Dagne and published by . This book was released on 2014 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: Official Development Assistance (ODA), commonly known as foreign aid comprises resource transfers from developed to developing countries in the form of grants and loans at concessional financial terms. Even though the primary objective of foreign aid is to promote economic development and welfare in aid recipient countries, after decades of capital transfer several studies on the relationship between foreign aid and economic growth find contradicting results. The aim of this thesis is to test the hypothesis that the impact of foreign aid on economic growth per capita may differ between humanitarian and development aid in the short and long run for aid recipient countries. To test this hypothesis, we employ panel and cross sectional regressions and used Ordinary Least Squared (OLS) as well as Two Stage Least Squared (2SLS) estimation methods for 81 aid recipient countries between the time period of 1990 and 2010. The study uses a fixed effect model and regresses humanitarian and development aid on GDP per capita growth separately to observe short and long run impacts. Under the panel OLS estimation method we find that a one percent increase in development aid increases GDP per capita growth by 1.19 percentage-points where as it reduces GDP per capita growth by 6.8 percentage-points under 2SLS estimations. However, in the long run (cross sectional regression), we find this type of aid reduces GDP per capita growth by 0.53 percentage-points under OLS and by 1.13 percent under 2SLS estimation methods. Moreover, a one percent increase in humanitarian aid increases GDP per capita growth by 0.68 percentage-points under OLS estimations in the short (panel) and 0.62 in the long run (cross sectional) regression. The major causes of the difference with other studies are discussed in terms of specification, sample size and instrument used. Given these limitations, this study may contribute to the important debate which continues to surround the aid effectiveness argument. Further research is needed in this field to provide donors and recipients in order to improve development policy.
Book Synopsis Aid and Growth at the Regional Level by : Axel Dreher
Download or read book Aid and Growth at the Regional Level written by Axel Dreher and published by International Monetary Fund. This book was released on 2015-09-03 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper brings the aid effectiveness debate to the sub-national level. We hypothesize the nonrobust results regarding the effects of aid on development in the previous literature to arise due to the effects of aid being insufficiently large to measurably affect aggregate outcomes. Using geocoded data for World Bank aid to a maximum of 2,221 first-level administrative regions (ADM1) and 54,167 second-level administrative regions (ADM2) in 130 countries over the 2000-2011 period, we test whether aid affects development, measured as nighttime light growth. Our preferred identification strategy exploits variation arising from interacting a variable that indicates whether or not a country has passed the threshold for receiving IDA's concessional aid with a recipient region's probability to receive aid, in a sample of 478 ADM1 regions and almost 8,400 ADM2 regions from 21 countries. Controlling for the levels of the interacted variables, the interaction provides a powerful and excludable instrument. Overall, we find significant correlations between aid and growth in ADM2 regions, but no causal effects.
Book Synopsis Does Aid Contribute to Sustainable Development Goals? Empirical Evidence from a Donor Comparison by : Paul Faust
Download or read book Does Aid Contribute to Sustainable Development Goals? Empirical Evidence from a Donor Comparison written by Paul Faust and published by Anchor Academic Publishing. This book was released on 2018 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: No Poverty, Zero Hunger, Good Health, Well-being and Quality Education – these are the first priorities of the Sustainable Development Goals (SDGs) that were launched jointly by all UN Member States on January 1, 2016. The agenda of this agreement contains 17 main goals with a total of 169 targets and is dedicated to improving global living conditions and to address issues of environmental and economical sustainability with a planning horizon through to 2030. Development assistance from economically advanced countries, also referred to as aid, is one of the major means to provide financing for countries with less developed economies that face severe social problems, and which often cannot handle these problems alone. Previous studies have shown, however, that aid is ineffective and recommend comprehensive restructuring of the common aid practices. Investigations that analyse the pattern of aid flows find, moreover, that granting aid to certain recipient countries cannot only be explained by altruistic motives. They show that several strategic or non-strategic reasons have a high explanatory power for individual donor aid allocation. Against this background, the present study explores aid effectiveness of distinct bilateral donors. This is achieved by a large-scale panel data analysis applying per-capita economic growth, infant mortality and primary growth as indicators for measuring the contribution of aid to achieving the different SDGs.
Book Synopsis Aid and Development by : Anne O. Krueger
Download or read book Aid and Development written by Anne O. Krueger and published by . This book was released on 1989 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Aid Effectiveness and Capacity Development: Implications for Economic Growth in Developing Countries by : Prabuddha Sanyal and Suresh Babu
Download or read book Aid Effectiveness and Capacity Development: Implications for Economic Growth in Developing Countries written by Prabuddha Sanyal and Suresh Babu and published by Intl Food Policy Res Inst. This book was released on with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Aid as Handmaiden for the Development of Institutions by : M. Nissanke
Download or read book Aid as Handmaiden for the Development of Institutions written by M. Nissanke and published by Springer. This book was released on 2013-04-23 with total page 275 pages. Available in PDF, EPUB and Kindle. Book excerpt: Through comparative studies of aid-supported infrastructure projects in East Asia and Sub-Saharan Africa, the book examines how aid could assist development processes by facilitating development of local endogenous institutions.
