Changing the Conditions for Development Aid: A New Paradigm?

Hermes, C.L.M.; Lensink, B.W.

doi:10.4324/9781315827834-1

Cited by 8 publications

(9 citation statements)

References 1 publication

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“…At the end of the 1990s, conditional ODA started to be contested, showing its first signs of exhaustion. Beyond the poor economic results, though, at the end of the decade, criticism against the conditional delivery model (Hermes and Lensink 2001) became pervasive. Three points were noteworthy: (i) a legitimacy gap generated by the imposition of policies by foreign powers; (ii) the selectivity of the conditional approach (Doornbos 2001;Pronk 2001); and, (iii) the sustainability gap broadened with the dismantling of national capacities for policy design and implementation across the developing world, perpetuating in many cases aid dependency.…”

Section: 4mentioning

confidence: 99%

Diffusion, Fusion, and Confusion: Development Cooperation in a Multiplex World Order

Esteves

Klingebiel

2020

The Palgrave Handbook of Development Cooperation for Achieving the 2030 Agenda

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Development cooperation (DC) is shaped by norms. We aim at filling a gap of research on DC by using the academic debates in international relations on norms. Contrary to interpretations that consider developed countries as norm-makers and developing countries as norm-takers, our analysis provides evidence that—and highlights how—Southern agents have influenced the processes of norm-setting and norm-diffusion for DC. The OECD was the dominant norms “entrepreneur” for a long period of time; more recently, developing countries have played a significant role in setting DC norms. We identify the diverging norms for official development assistance and South-South cooperation and the interrelationship between both norm systems. Thus, norm-making, norm-taking, and norm-diffusion of two competing norm clusters are key terms of the contribution.

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Section: 4mentioning

confidence: 99%

Diffusion, Fusion, and Confusion: Development Cooperation in a Multiplex World Order

Esteves

Klingebiel

2020

The Palgrave Handbook of Development Cooperation for Achieving the 2030 Agenda

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“…Studies by Hansen and Tarp (2000); Hermes and Lensink (2001); Morrissey (2001);McGillivray (2003) and McGillivray et al (2005) have tried to investigate the progress made in the literature on the macroeconomic effect of foreign aid over time. McGillivray et al (2005) examined the foreign aid-growth controversy for the past 50 years.…”

Section: Literature Reviewmentioning

confidence: 99%

Macroeconomic Effect of Foreign Aid

Afolabi¹,

Nwanekwere²

2019

Asian Journal of Economics and Empirical Research

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The study examines the linear and non-linear macroeconomic effect of foreign aid in Nigeria between 1970 and 2017. The macroeconomic variables considered include real GDP per capital growth, investment, real interest rate and consumer price index. It adopts the Linear and Non-Linear ARDL estimation techniques. The linear regression results show foreign aid to have no significant effect on welfare, measured by RGDPPC in the short-run and long-run. On investment however, foreign aid exerts significant positive influence both in the short-run and long-run and the impact of foreign aid on real interest rate and consumer price index is felt more in the longrun, than in the short-run. Looking into the asymmetry relationship, it was found that increase in aid significantly reduces welfare in Nigeria and decrease in aid significantly increases welfare and both positive and negative changes in aid have no significant effect on investment. Real interest rate is unaffected by increase in aid, but significantly affected by decrease in aid. Consumer price index is significantly affected by both positive and negative change in aid in short run and long run.

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“…A large body of literature addresses the foreign aid and growth nexus and broadly falls into two categories: (i) unconditional growth effect studies and (ii) conditional growth effect studies. The first implies that growth will affect the recipient economy without any prerequisites (see Hansen & Tarp, 2001;Hermes & Lensink, 2001;Moreira, 2005). The second holds that the growth effect is conditional on a sound policy environment (see Collier & Dollar, 2002;Burnside & Dollar, 2000;Collier & Hoeffler, 2004).…”

Section: Introductionmentioning

confidence: 99%

The Aid, Macroeconomic Policy Environment and Growth Nexus: Evidence from Selected Asian Countries

Liaqat¹,

Ahmad²,

Kifle³

et al. 2019

LJE

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This study empirically investigates the aid effectiveness debate in light of the Burnside-Dollar (2000) hypothesis that the recipient country’s policy environment is critical for aid effectiveness. Based on data from ten Asian countries for 1984–2015 and in line with Burnside and Dollar (2000), we construct a new composite policy index. Employing two-stage least squares to estimate the model, we find that aid had a negative impact on economic growth during the study period for these countries, thus refuting the Burnside-Dollar aid effectiveness hypothesis.

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Changing the Conditions for Development Aid: A New Paradigm?

Cited by 8 publications

References 1 publication

Diffusion, Fusion, and Confusion: Development Cooperation in a Multiplex World Order

Diffusion, Fusion, and Confusion: Development Cooperation in a Multiplex World Order

Macroeconomic Effect of Foreign Aid

The Aid, Macroeconomic Policy Environment and Growth Nexus: Evidence from Selected Asian Countries

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