Can Foreign Aid Buy Growth?

Can Foreign Aid Buy Growth?

Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your perso...

Can Foreign Aid Buy Investment? Appropriation Through Conflict∗

The failure of foreign aid to promote growth in the developing world has received significant attention as evidence suggests that foreign aid does not translate into investment. This research has demonstrated that poor institutions in these developing economies (particularly with respect to property rights) results in an inability to fully appropriate the return to one’s investment, thereby ser...

17 Can Foreign Aid Save Africa ?

Foreign Aid, Incentives and Efficiency: Can Foreign Aid Lead to Efficient Level of Investment?

This paper develops a two-period-two-country model in which an altruistic donor faces Samaritan’s Dilemma to address two important policy questions: (i) whether foreign aid can lead to efficient level of capital investment in the recipient country and (ii) how do the form (e.g. budgetary transfers, capital transfer) and the timing of aid affect the incentives of the recipient? It finds that the...

Foreign Aid Fungibility, Growth, and Poverty Reduction

This paper tries to assess to which extent fungibility in sectoral foreign development assistance is something donors should be concerned about. This is done in three steps. First, country specific estimates of the degree of fungibility are obtained. These are then incorporated in a well established empirical aid-growth equation. Third, arguing that the aid-growth relation may not be the releva...