Foreign aid allocation, governance, and economic growth

2012 ◽  
Author(s):  
International Food Policy Research Institute (IFPRI)
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Aid Allocation

Foreign aid allocation, governance, and economic growth Synopsis

2012 ◽  
Author(s):  
International Food Policy Research Institute (IFPRI)
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Aid Allocation

scholarly journals Foreign Aid Allocation: A Neural Network Approach

1970 ◽  
Vol 34 (1) ◽  
pp. 33-56
Author(s):  
Sevinc Rende
Keyword(s):  
Neural Network ◽  
Economic Growth ◽  
Neural Networks ◽  
Artificial Neural Networks ◽  
Foreign Aid ◽  
Geographical Proximity ◽  
Network Approach ◽  
Neural Network Approach ◽  
Aid Allocation ◽  
Structural Indicators

During the last twenty years, there have been strong supporters of foreignaid, and equally strong critiques. The debate is based on an effort to establish acausal relationship between foreign aid and economic growth, and it is still ongoing.Rather than seeking to uncover the causal relationships, I examine foreign aid andits relation to structural indicators in aid dependent countries using a special typeof artificial neural networks, known as Kohonen maps. The findings suggest thataid allocation and coordination could be based on institutional and climate-basedsimilarities across recipient countries rather than the geographical proximity or thecultural ties, or preferences, between the donor and recipient countries.

Pakistan's Export Possibilities

1973 ◽  
Vol 12 (1) ◽  
pp. 1-30
Author(s):  
Syed Nawab Haider Naqvi
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Policy Maker ◽  
Time Horizon ◽  
Price Level ◽  
Balance Of Payments ◽  
Domestic Saving ◽  
Trade Offs ◽  
High Level

The recent uncertainties about aid flows have underscored the need for achieving an early independence from foreign aid. The Perspective Plan (1,965-85) had envisaged the termination of Pakistan's dependence on foreign aid by 1985. However, in the context of West Pakistan alone the time horizon can now be advanced by several years with considerable confidence in its economy to pull the trick. The difficulties of achieving independence from foreign aid can be seen by reference to the fact that aid flows make it possible for the policy-maker to pursue such ostensibly incompatible objectives as a balance in international payments (i.e., foreign aid finances the balance of payments), higher rates of economic growth (Lei, it pulls up domestic saving and investment levels), a high level of employment (i.e., it keeps the industries working at a fuller capacity than would otherwise be the case), and a reasonably stable price level (i.e., it lets a higher level of imports than would otherwise be possible). Without aid, then a simultaneous attainment of all these objectives at the former higher levels together with the balance in foreign payments may become well-nigh impos¬sible. Choices are, therefore, inevitable not for definite places in the hierarchy of values, but rather for occasional "trade-offs". That is to say, we will have to" choose how much to sacrifice for the attainment of one goal for the sake of somewhat better realization of another.

What type of economic growth does foreign aid support?

2009 ◽  
Vol 16 (7) ◽  
pp. 727-730 ◽  
Author(s):  
Simon Feeny ◽  
Bazoumana Ouattara
Keyword(s):  
Economic Growth ◽  
Foreign Aid

scholarly journals Foreign aid on economic growth in Africa: A comparison of low and middle-income countries

2015 ◽  
Vol 18 (4) ◽  
pp. 449-462 ◽  
Author(s):  
Aye Mengistu Alemu ◽  
Jin-Sang Lee
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Low Income ◽  
Empirical Studies ◽  
Critical Role ◽  
Generalized Method Of Moments ◽  
African Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Theoretical Hypothesis

Previous empirical studies on the effects of foreign aid on economic growth have generated mixed results that make it difficult to draw policy recommendations. The main reason for such mixed results is the choice of a single aggregate list of countries, regardless of the disparities in levels of development. This study therefore fills the development gap by disaggregating the African data into a panel of 20 middle- income and 19 low- income African countries over a period of 15 years between 1995 and 2010, and employing a dynamic generalized method of moments (GMM) model to address the dynamic nature of economic growth as well as the problems of endogeneity. The results of this study support the theoretical hypothesis that a positive relationship between aid and GDP growth exists, but only for low-income African countries, not middle-income ones. On the other hand, the study reveals that middle- income African countries tend to experience a greater impact on their economic growth from foreign direct investment (FDI) and natural resources revenues, mainly oil exports. This implies that the frequent criticism that foreign aid has not contributed to economic growth is flawed, at least in the case of low-income African countries. In fact, foreign aid has played a critical role in stimulating economic growth in such countries through supplementing domestic sources of finance such as savings, thus increasing the amount of investment and capital stock in them.

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