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Aid allocation effects on growth and poverty: A CGE framework AgEcon
Twimukye, Evarist P.; Nabiddo, Winnie; Matovu, John Mary.
It has been argues that increased aid causes Dutch disease as a result of appreciation of the exchange rate which reduces the competitiveness of the country's exports. In this paper, we argue that if the aid is used productively, there are both short and long term gains. Applying a recursive dynamic general equilibrium model on Uganda, we find that while the currency appreciates and some exports decline, the overall impact on growth outweighs the losses in competitiveness. In addition, it aid is used productively, poverty would be substantially reduced as long as the aid increase is sustained.
Tipo: Report Palavras-chave: Aid; Exchange rate; Dutch disease; Twimukye; Nabiddo; Matovu; Exports; Foreign aid; Poverty reduction; Economic policy research center; Community/Rural/Urban Development; Consumer/Household Economics; Demand and Price Analysis; Financial Economics; International Development; Labor and Human Capital; Production Economics; Productivity Analysis; Public Economics.
Ano: 2009 URL: http://purl.umn.edu/54937
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Aid, Governance, and Private Foreign Investment: Some Puzzling Findings and a Possible Explanation AgEcon
Harms, Philipp; Lutz, Matthias.
Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries' institutional environment, we find that, evaluated at the mean, the marginal effect of aid on private foreign investment is close to zero. Surprisingly, however, the effect is strictly positive for countries in which private agents face a substantial regulatory burden. After testing the robustness of this result, we offer a theoretical model that is able to rationalize our puzzling observation.
Tipo: Working or Discussion Paper Palavras-chave: Aid; Foreign Direct Investment; Institutions; International Relations/Trade; F35; F21; O16; O19.
Ano: 2003 URL: http://purl.umn.edu/26128
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DIMENSIONS OF CONFLICT AND THE ROLE OF FOREIGN AID IN FIJI AgEcon
Gounder, Rukmani.
As diversity is the strength for economic growth quality domestic institutions and good governance are some of the essential factors to achieve sustainable growth and maintain social stability and harmony. Therefore, necessary social, economic, political and institutional dynamics contribute to higher growth prospects and mitigate conflict in a multi-cultural society. Since the 1987 military coups some of the issues that have confronted the people of Fiji, and others, co-integrate with ethnicity, political instability, conflict and governance. This article links these issues and evaluates the characteristics and factors associated with the dimensions of conflict. In particular, the study highlights the nature and impact of conflict on the civil society and...
Tipo: Working or Discussion Paper Palavras-chave: Conflict; Aid; Donor Approaches; Fiji; International Development.
Ano: 2005 URL: http://purl.umn.edu/23699
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Modelling the Fiscal Effects of Aid: An Impulse Response Approach for Ghana AgEcon
Morrissey, Oliver; Osei, Robert; Lloyd, Tim A..
An important feature of aid to developing countries is that it is given to the government. As a result aid has the potential to affect budgetary behaviour. Although the (albeit limited) aid-growth literature has addressed the effect of aid on policy, it has tended to neglect the effect of aid on the fiscal behaviour of governments. While fiscal response models have been developed to examine the effects of aid on fiscal aggregates - taxation, expenditure and borrowing - the underlying theory is ad hoc and empirical methods used are subject to severe limitations. This paper applies techniques developed in the "macroeconometrics" literature to estimate the dynamic structural relationship between aid and fiscal aggregates. Using vector autoregressive methods,...
Tipo: Working or Discussion Paper Palavras-chave: Aid; Fiscal Response; Ghana; International Development; International Relations/Trade; F35; O23; O11; O55.
Ano: 2002 URL: http://purl.umn.edu/26226
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The influence of official development assistance on economical development of the selected groups of developing countries around the world AgEcon
Pokorna, Irena; Smutka, Lubos.
The current financial crisis influenced the whole economy around the world. Almost all sectors of human activities and all countries are affected by its impacts. While in the past all kinds of crises had an effect on developing countries and in case of developed countries only selected sectors of the national economy were involved, the current crisis, which started in the second half of 2008, seriously affected not only developing countries but also developed countries. During the last several decades, we became witnesses of a permanently increasing gap between developing and developed countries. While only few developed countries with about 1.2 billion people produced about 80 % of the world GDP, the rest of the world represented by developing countries...
Tipo: Journal Article Palavras-chave: Aid; Development assistance; Economic growth; Developing countries; Political Economy.
Ano: 2009 URL: http://purl.umn.edu/96848
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