Handbook on the Economics of Foreign Aid

Arvin, B.; Lew, Byron

doi:10.4337/9781783474592

Cited by 12 publications

(12 citation statements)

References 15 publications

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“…Having derived equation 3, it was possible to identify that such approach could be problematic. As a considerable proportion of aid flows might directly fund public spending on social services, thus, including both measures in a single regression estimation, as previously suggested in equation (2), would lead to double counting. Consequently, spurious results would be obtained.…”

Section: Construction Of Generated Regressormentioning

confidence: 99%

“…Thus, this study has also adopted an identical approach. The principal objective of this procedure is to eliminate public social spending directly financed by aid, thus removing double counting issue detected in equation (2). In this regard, the first step sought to test the hypothesis that a share of foreign aid is used to directly finance public spending towards social services.…”

Section: Construction Of Generated Regressormentioning

confidence: 99%

“…Thereafter, the construction of the generated regressor, equation (2) has been rewritten as follows:…”

Section: Baseline Modelmentioning

confidence: 99%

“…In 1948, the Marshall Plan was launched and provided approximately $300 billion dollars (at today's exchange rate) seeking to help the reconstruction of many of the European countries affected by the war. From that period onwards, aid has attempted to provide support for the diverse development challenges experienced in modern societies (Arvin and Lew, 2015). More specifically, in the last four decades, the principal aim of aid donors has been on helping developing countries reduce their poverty levels.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Foreign Aid on Aggregate Welfare Measures: A Panel Data Analysis

Alves

Couto

2018

SSRN Journal

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Does foreign aid enhance aggregate human welfare? This paper attempts to answer this question by using a panel of twenty-eight countries, covering the period from 1990 to 2014. It explores intra-country variation by splitting the sample into low-income and middle-income countries. Combined with the fixed effects estimator, these approaches sought to control for the heterogeneity of the effects of aid on welfare measures. Perhaps surprisingly, there was no evidence that foreign aid contributes to the reduction of infant mortality or increase of human development index.

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Section: Construction Of Generated Regressormentioning

confidence: 99%

Section: Construction Of Generated Regressormentioning

confidence: 99%

“…Thereafter, the construction of the generated regressor, equation (2) has been rewritten as follows:…”

Section: Baseline Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Impact of Foreign Aid on Aggregate Welfare Measures: A Panel Data Analysis

Alves

Couto

2018

SSRN Journal

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“…The Harrod-Domar equation or relationship is illustrated in Equation 1. [1] where is the rate of growth of income (output) in the economy, is the savings ratio or rate of savings (which is assumed to be equivalent to available savings), and is the capital-output ratio. The main assumptions of the model are that there is an excess supply of labour in the economy, economic growth is constrained only by the availability and productivity of capital, and that the availability of capital (level of investment) is determined by the level of savings (McGillivray et al, 2006(McGillivray et al, , p. 1033.…”

Section: 2mentioning

confidence: 99%

On the Link Between Foreign Aid and Poverty Reduction in Developing Countries

Mahembe

Odhiambo

2017

RGE

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This article explores the theoretical link and transmission mechanism through whichofficial development assistance (ODA) or foreign aid affects poverty. The study alsopresents some major debates on the effectiveness of foreign aid on development ingeneral and poverty reduction in particular. The main findings from this exploratory studysuggest that there is no generally accepted economic theory upon which foreign aidallocation is based. Several theories have been advanced, but most of them have beenheavily criticized. As a result, there are two distinct and extreme lines of thoughts: thosewho believe that foreign aid can contribute to a virtuous circle of economic growth andpoverty reduction against the other group, which contends that foreign aid leads to avicious cycle of poverty and stunted development. Finally, a third group assumes that oncewe distinguish channels through which foreign aid affects development, we may noticeseveral degrees of positive impact on development and diminution of poverty, dependingon the choice of channel, the recipient country features and the domestic economicpolicies.

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Understanding the Role of Aid for Trade in Enhancing Corridor Development and Regional Integration in West Africa: Lessons and Policy Directions

Akinsanya¹

2020

Advances in African Economic, Social and Political Development

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Handbook on the Economics of Foreign Aid

Cited by 12 publications

References 15 publications

The Impact of Foreign Aid on Aggregate Welfare Measures: A Panel Data Analysis

The Impact of Foreign Aid on Aggregate Welfare Measures: A Panel Data Analysis

On the Link Between Foreign Aid and Poverty Reduction in Developing Countries

Understanding the Role of Aid for Trade in Enhancing Corridor Development and Regional Integration in West Africa: Lessons and Policy Directions

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