New perspectives on foreign aid and economic development / edited by B. Mak Arvin.

Format:

Book

Contributor:

Arvin, B. Mak, 1959-

Language:

English

Subjects (All):

Economic assistance--Case studies.

Economic assistance.

Economic development--Case studies.

Economic development.

Physical Description:

1 online resource (311 p.)

Edition:

1st ed.

Distribution:

London : Bloomsbury Publishing, 2024

Place of Publication:

Westport, Conn. : Praeger, 2002.

Language Note:

English

Summary:

The success or failure of economic assistance programs is a shared responsibility of recipient countries and donors. The negative attitude about aid prevalent today underscores a perception the aid has failed. Critics often blame corrupt regimes, weak governments, or poor economic policies. However, the poor track record of aid is also due to donors' inability to allocate limited funds effectively and poor coordination of their aid efforts. Declining aid budgets have led to fundamental questioning of foreign aid's allocation and utility, while the apparent ineffectiveness of aid has shrunk aid budgets and turned public opinion against providing it. This edited collection containing pieces written by leading development specialists evaluates these emerging questions of allocation and efficiency. Development economists, policy makers, and development specialists will benefit from reading this work. Chapters examine the optimal and intertemporal allocation of aid, the role and accountability of NGOs in allocation, the importance of untying (a new perspective on low levels of aid), and links between the allocation pattern of donors. Additional chapters deal with the impact of aid on economic growth, democracy, wage inequality between skilled and unskilled labor, and the role of governance and institutional capacity in aid effectiveness. An effective balance between theoretical and empirical models is offered to better illustrate the issues involved.

Contents:

Intro

New Perspectives on Foreign Aid and Economic Development

Contents

Illustrations

TABLES

FIGURES

EXHIBITS

Preface

Introduction

NOTES

Part I Allocation of International Aid

1 Modeling Intertemporal Aid Allocation to Papua New Guinea

INTRODUCTION

MODELING INTERTEMPORAL AID ALLOCATION

ESTIMATION PROCEDURE AND DATA

Estimation Procedure

Data

RESULTS AND INTERPRETATIONS

CONCLUSION

REFERENCES

2 Multilateral Aid Coordination by the International Financial Institutions

LITERATURE REVIEW

Canadian Aid Literature

Empirical Aid Allocation Literature

Multilateral Determinants

EVALUATING DONOR COORDINATION

Simple Correlation Analysis

Regression Analysis

Non-Canadian ODA Estimations

Canadian ODA Estimations

CONCLUSIONS

ACKNOWLEDGMENTS

APPENDIX DATA DEFINITIONS AND SOURCES

3 Aid Principles and Policy

METHODOLOGY

A Model without Sample Selection

Model with Sample Selection

An Index of Donor Performance

EMPIRICAL APPLICATION

Developmental, Commercial and Political Indicators

Results

Performance Based on Developmental Criteria Alone

Interpretation and Implication of Results

APPENDIX DEVELOPING COUNTRY SAMPLE AND OBSERVED AND OPTIMAL ODA ALLOCATIONS BY FRANCE, JAPAN, THE UNITED KINGDOM, AND THE UNITED STATES

4 Interventions, Accountability, and Aid

UNDERSTANDING THE DILEMMA: NGOS, INCENTIVES, AND ACCOUNTABILITY

INTERVENTION, CONSERVATION, AND WFT

CAUSE OR CATALYST?

PRIORITIES, POLITICS, AND ACCOUNTABILITY

5 Foreign Aid and Donor Export Performance

INTRODUCTION.

THE CUMULATIVE PRIMARY AND SECONDARY EFFECTS OF AID ON DONORS' EXPORTS

ESTIMATION OF EXPORT ELASTICITIES

The Model and Its Philosophy

Estimation Results

Pooled Estimates

Individual Country Estimates

6 Coordinated and Uncoordinated Foreign Aid

THE BASIC FRAMEWORK

THE CASE OF SMALL OPEN ECONOMIES

INTRODUCING TERMS-OF-TRADE EFFECTS

Part II Impact of Aid on Development

7 Empirical Evidence of the Relationship between Foreign Aid and Economic Growth

ECONOMIC PERFORMANCE AND FOREIGN AID FLOWS TO THE SOLOMON ISLANDS: A BRIEF OVERVIEW

FOREIGN AID-GROWTH RELATIONSHIP: AN OVERVIEW

EMPIRICAL ANALYSIS: MODELS AND METHODOLOGY

EMPIRICAL RESULTS FOR THE SOLOMON ISLANDS AID-GROWTH NEXUS

8 Is Democracy a Component of Donors' Foreign Aid Policies?

HSIAO'S VERSION OF GRANGER CAUSALITY

DATA AND VARIOUS SAMPLES

RESULTS FROM THE CAUSALITY TEST

AN ERROR-CORRECTION CAUSAL STRUCTURE AND RESULTS FOR INDIVIDUAL COUNTRIES

Stationarity Tests

Cointegration and Error-Correction

Estimation Results with Error-Correction

APPENDIX THE FREEDOM HOUSE DEMOCRACY INDEX

A.1 POLITICAL RIGHTS CHECKLIST

A.2 EXPLANATION OF THE POLITICAL RIGHTS RATINGS

9 Policy Implications for Aid Allocations of Recent Research on Aid Effectiveness and Selectivity

AID EFFECTIVENESS AND ASSESSING AID

The Impact of Aid on Growth and Poverty Reduction

The Impact of Aid on Policy and the Fungibility of Foreign Aid

COLLIER/DOLLAR POVERTY-EFFICIENT AID ALLOCATIONS

The Collier/Dollar Models Described

Step 1: Estimate the Impact of Aid on Growth.

Step 2: Estimate the Impact of Growth on Poverty Reduction

Step 3: Optimize Aid Allocations between Countries so as to Maximize the Number of People Lifted Out of Poverty

Results of the Collier/Dollar Models

Econometric Results

Allocation Results

Implications-The Benefits of Poverty-Efficient Reallocation

Some More Recent Collier/Dollar Analysis

COMPARING ACTUAL AID ALLOCATIONS WITH COLLIER/DOLLAR'S ALLOCATIONS

Global Aid Allocations (1996) Compared with CD2

Trends in Aid Allocations in the 1990s: A Comparison with Collier/Dollar

A MORE CRITICAL ASSESSMENT OF BURNSIDE/DOLLAR AND COLLIER/DOLLAR

Econometric Issues and Model Specification

Weaknesses of Cross-Country Regression Analysis

Selective Use and Interpretation of Policy Variables

Model Sensitivity to Respecification: The Case of Burnside/Dollar

External Shocks and Aid Instability

Wider Literature Highlights Positive Impact of Aid

Model Sensitivity and Data Anomalies: The Case of Collier/Dollar

Summary

Importance of Poverty

Fungibility, Conditionality, and Implications for Selectivity

Is Aid Really Fungible?

Is Policy Conditionality Really Ineffective?

Implications For and Merits of Selectivity

Other Routes to Poverty Reduction and Other Benefits of Aid

Growth Is Not the Only Route to Poverty Reduction

Growth Is Not the Only Benefit of Aid

National or Global Poverty Reduction?

Other Issues

CONCLUSIONS AND POLICY IMPLICATIONS

Reform Aid Allocation Processes

Reallocate Aid to Poor Countries

Reallocate-Somewhat-to Good Performers

More Flexible Aid Delivery Systems

Lobby for More Aid

APPENDIX RESULTS AND ANALYSIS OF THE COLLIER/DOLLAR POVERTY-EFFICIENT AID ALLOCATION MODELS.

10 Foreign Aid, Wage Inequality, and Skill Formation in a North-South Product-Cycle Model

HECKSCHER-OHLIN-SAMUELSON PRODUCTION AND DISTRIBUTION

THE ENDOGENOUS SKILL DECISION

LEARNING-BASED RICARDIAN TRADE IN HIGH-TECH GOODS

THE DERIVED DEMAND FOR HIGH-TECH INTERMEDIATES

EQUILIBRIUM IN THE MARKETS FOR HIGH-TECH INTERMEDIATES

LONG-RUN EQUILIBRIUM AND THE DYNAMICS OF EXPERIENCE

PURE UNILATERAL TRANSFERS

FOREIGN AID THAT PROMOTES TECHNOLOGY TRANSFER

Index

About the Contributors.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Includes bibliographical references and index.

ISBN:

9798400691164

9786610422814

9781280422812

1280422815

9780313012280

0313012288

OCLC:

614694880