Financing Development Expenditures Through Development Aid and Its Impact on Economic Growth

2014 ◽  
Author(s):  
Farheen Fatima
Keyword(s):  
Economic Growth ◽  
Development Aid

scholarly journals The Impact of Development Aid on the International Migrations in the African, Caribbean, and Pacifi c Group of States

2017 ◽  
Vol 20 (1) ◽  
pp. 101-112 ◽  
Author(s):  
Marko Gregl ◽  
Klavdij Logožar
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Direct Effect ◽  
Developed Countries ◽  
Development Aid ◽  
Donor Side ◽  
Financial Flows ◽  
The Pacific ◽  
African Caribbean ◽  
The Impact

Abstract Development aid, one of the most important mechanisms for the redistribution of global wealth, represents financial flows that have economic growth and social improvement as their main objective. It has also frequently been described as an instrument which is able to diminish international migrations and is used by several developed countries. Recently, much empirical evidence and several contributors have argued that connection and set out other grounds. This paper explores the interaction between development aid and migrations from developing to developed countries. We want to determine, if the amount of development aid has any impact on migrations from African, Caribbean, and the Pacific Group of States. Our results show that development aid does not have a direct effect on migrations and therefore, in terms of international migrations, is not effective. Moreover, we will argue that the donor side should use different policies and other mechanisms to manage migrations from those countries

scholarly journals Development Aid, Economic Growth Volatility and Poverty Volatility in Developing Countries

2021 ◽  
Vol Volume II (December 2021) ◽  
pp. 1-15
Author(s):  
Sèna Kimm GNANGNON
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Development Aid ◽  
Negative Effect ◽  
Growth Volatility

This article has analysed the effect of development aid flows on poverty volatility in developing countries, including through the economic growth volatility channel. Using a sample of 106 countries over the period 1980-2017, and the two-step system Generalized Methods of Moment (GMM) technique, the analysis has shown that development aid flows dampen the positive poverty volatility effect of economic growth volatility: the magnitude of the negative effect of development aid on poverty volatility rises as the degree of economic growth volatility increases. Additionally, development aid exerts a higher negative effect on poverty volatility as countries face higher poverty rates. These findings highlight the importance of development aid for stabilizing poverty rates.

scholarly journals Sources of Economic Growth in Zambia: An Empirical Investigation

2017 ◽  
Vol 18 (2) ◽  
pp. 275-290 ◽  
Author(s):  
Themba G. Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
International Trade ◽  
Foreign Aid ◽  
Development Aid ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Capital Development ◽  
Macroeconomic Determinants

In this article, the key macroeconomic determinants of economic growth in Zambia are investigated using the autoregressive distributed lag (ARDL) bounds testing approach. The study has been motivated by the unsustainable growth trends that Zambia has been experiencing in recent years. Our study finds that the key macroeconomic determinants that are significantly associated with economic growth in Zambia include, amongst others, investment, human capital development, government consumption, international trade and foreign aid. The study’s results reveal that in the short run, investment and human capital development are positively associated with economic growth, while government consumption, international trade and foreign aid are negatively associated with economic growth. However, in the long run, the study finds investment and human capital development to be positively associated with economic growth, while only foreign aid is negatively associated with economic growth. These results have significant policy implications. They imply that short–run economic policies should focus on creating incentives that attract investment and increase the quality of education, the effectiveness of government institutions, the promotion of international trade reforms and the effectiveness of development aid. In the long run, development strategies should focus on attracting the accumulation of long-term investment, improving the quality of education and the effectiveness of development aid.

Theory and Practice of International Development Assistance in Third World Countries: Background for the 1980's

1981 ◽  
Vol 37 (4) ◽  
pp. 566-582 ◽  
Author(s):  
Seleshi Sisaye
Keyword(s):  
Quality Of Life ◽  
Economic Growth ◽  
International Development ◽  
Third World ◽  
Development Assistance ◽  
The United States ◽  
Development Aid ◽  
Theory And Practice ◽  
Development Objective

Since the beginnings of development assistance to Third World countries during the post-World War II period, there have been some philosophical changes in the theory and practice of development aid programmes. Western development aid ( i.e., of the United States and West European countries), can be classified into two main conceptual types. These include economic growth as development objective and economic growth with an increased quality of life as development objective. The first two decades of development assistance 1950–1970 focused on economic growth objectives with increased production. The period, 1970–1980 concentrated on redistributive measures to improve the quality of life of the rural poor, the provision of basic needs, creation of employment opportunities, and the implementation of policy measures to reduce relative inequality and absolute poverty. The main purpose of this article is to discuss the changes in the theory and practice of Western aid programmes in Third World countries from 1945–1979. We will look into the underlying international causes that contributed to these changes. We will also review the evolution of aid to Third World countries for the last thirty years by examing the economic, political and social background for the changes in development assistance from urban to rural development programmes and from an emphasis in increasing production to that of redistribution with growth. These problems are discussed in the hight of their relevance for policy-onented rescoorch in Third World Comtnes.

scholarly journals Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries

2019 ◽  
Vol 11 (6) ◽  
pp. 1538 ◽  
Author(s):  
Robert Stojanov ◽  
Daniel Němec ◽  
Libor Žídek
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Regression Models ◽  
Development Aid ◽  
Linear Regression Models ◽  
Term Stability ◽  
Long Term Stability ◽  
Remittance Flows ◽  
Sustainable Economic Growth

In our paper, we analyse the long-term stability and impact of remittances and development aid on sustainable economic growth in developing countries. We use two data samples from countries that were recipients of both aid and remittances in the corresponding period. First, unbalanced data from the years 1970 to 2017; that is, how countries appear in the data. Second, balanced data, where we selected the largest possible set of countries for which data exists without gaps from the years 1970–2017. This dataset consists of 57 countries for the period from 1991 to 2017. Using linear regression models, we conclude that up until the end of the 1980s, the size of aid as a share of gross domestic product (GDP) was larger than the share of remittances. After that, the situation changed and the shares of both inflows were broadly similar. The inflow of remittances was more stable than the inflow of aid and development aid did not (on the contrary to remittances) contribute positively to sustainable economic growth if we consider the entire period between 1970 and 2017. Our results suggest that a statistically significant relationship between development aid and economic growth (per capita) may be observed only in the period from 1990 to 1999. Economic growth in developing countries is negatively influenced by the uncertainty related to the flows of official development assistance (ODA) and aid in all investigated decades. In the case of the remittance flows, the increased volatility tends to contribute negatively to sustainable economic growth only when the remittance flows represent a relatively higher share of GDP.

Foreign Capital and Economic Growth

1988 ◽  
Vol 23 (3) ◽  
pp. 302-310
Author(s):  
Raj Aggarwal
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Global Change ◽  
Foreign Capital ◽  
Development Aid ◽  
Capital Inflows ◽  
Private Capital ◽  
Competitive Markets ◽  
Poor Countries ◽  
Foreign Capital Inflows

In the current environment of significant global change, how can declining levels of development aid and private capital inflows be best used to promote economic growth in the developing countries? This question is addressed here and traditional analysis of this topic is complemented by taking a perspective that focuses on the limitations of how development aid and foreign capital inflows are usually allocated. It is suggested here that poor countries can benefit from a greater use of competitive markets to allocate development aid and private capital inflows.

scholarly journals Official Development Aid: Plaster in A Wound? Evidence Using Data From Ethiopia

2021 ◽  
Author(s):  
Cherkos Meaza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Development Aid ◽  
Aid Effectiveness ◽  
Political Leader ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Official Development Aid

Abstract The flow of aid to developing countries has increased massively and they receive billions of dollars per year in the form of aid from bilateral and multilateral donors. However, the economic growth achieved by many developing countries in general has not been satisfactory. Poverty is still there and resulted in a custom of aid dependence and foster the opportunity for the corrupted political leader. The conclusion on aid effectiveness is doubtful among economists, found to be inconclusive. This paper intends to see how ethiopian economy is reacting to the flow of foreign aid coming from rest of the world viz-a-viz the current most prestigous and influential arguments against and pro-effectiveness of aid. A time series on important parameters extending from 1981 to the most current 2017 is used and an econometrics techniques ECM is employed to examine the short run dynamics and long run relationship among the variables. The result of the short run dynamics showed that aid has a negative and statistically significant impact on economic growth. However, the impacts turns to be positive in the long run. economic growth measured by the real GDP adjusts to its long run equilibrium with an average speed of about 25.7 percent annually and it will roughly take it about 4 years to restore back to equilibrium, ceteris paribus.

Sign in / Sign up

Export Citation Format

Share Document