Aid effectiveness: Looking at the aid-social capital- growth nexus
نویسندگان
چکیده
We examine the impact of institutional quality and social capital on aid effectiveness. We find strong evidence that social capital and institutions enhance aid effectiveness. Moreover, once we account for the role of social capital and institutions, the impact of policies tend to disappear. These findings have important policy implications as they indicate that conditioning aid allocation on ‘good policies’ may not lead to an optimal (or fair) allocation of aid, as countries with high social capital at the macro level could actually make good use of aid regardless of the quality of policy. This casts doubt on the conclusions in Burnside and Dollar (2000) and the policy lessons derived from their findings.
منابع مشابه
Looking at the Aid-Social Capital-Growth Nexus
We examine the impact of institutional quality and social capital on aid effectiveness. We find strong evidence that social capital and institutions enhance aid effectiveness. Moreover, once we account for the role of social capital and institutions, the impact of policies tend to disappear. These findings have important policy implications as they indicate that conditioning aid allocation on ‘...
متن کاملForeign Capital in a Growth Model
Within an endogenous growth framework, this paper empirically investigates the impact of financial capital on economic growth for a panel of 60 developing countries, through the channel of domestic capital formation. By estimating the model for different income groups, it is found that while private FDI flows exert beneficial complementarity effects on the domestic capital formation across all ...
متن کاملAid Effectiveness in the Sustainable Development Goals Era; Comment on ““It’s About the Idea Hitting the Bull’s Eye”: How Aid Effectiveness Can Catalyse the Scale-up of Health Innovations”
Over just a six-year period from 2005-2011, five aid effectiveness initiatives were launched: the Paris Declaration on Aid Effectiveness (2005), the International Health Partnership plus (2007), the Accra Agenda for Action (2008), the Busan Partnership for Effective Cooperation (2011), and the Global Partnership for Effective Development Cooperation (GPEDC) (2011). More recently, in 2015, the A...
متن کاملAid and the growth of income in aid-favoured developing countries: policy issues.
This paper opens by expressing disappointment in the disparities between published estimations of the effectiveness of foreign aid to developing countries and effectiveness data which arise from the application of complex econometric methods. The new dilemmas for aid policy include the fact that aid increasingly devoted to human development at the expense of productive activity is unlikely to ...
متن کاملAid, Growth and Private Capital Flows to Ghana
This study provides an analysis of the aid-private capital flows-growth nexus for Ghana. It is premised on the argument that Ghana’s new status as a middle income country plus the start of oil production is bound to result in a reduction in ODA inflows in the long term. However in the short to medium term ODA will remain an important component in the country’s fiscals as well as an important to...
متن کامل