Local Financial Development and the Aid-Growth Relationship -- Mfwanza Nkusu and Selin Sayek -- December 1, 2004 -- IMF Working Paper No. 04/238
نویسندگان
چکیده
This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. With official development assistance (ODA) set to rise as countries strive to meet the Millennium Development Goals (MDGs), aid effectiveness remains an important area of development policy. An increasing number of studies support the notion that ODA can contribute to growth in a nonlinear relationship. In this paper, we investigate a new hypothesis regarding this relationship: that deeper financial markets in aid-recipient countries facilitate the management of aid flows, thereby enhancing aid effectiveness. An empirical analysis, using a panel data set, finds robust support for the hypothesis. JEL Classification Numbers: F35, I30, O40, O50
منابع مشابه
Social Spending, Human Capital, and Growth in Developing Countries: Implications for Achieving the MDGs -- Emanuele Baldacci, Benedict Clements, Sanjeev Gupta,and Qiang Cui -- IMF Working Paper No. 04/217
This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. Using panel data from 120 developing countries from 1975 to 2...
متن کاملFinancial Integration: A New Methodology and an Illustration -- Robert P. Flood and Andrew K. Rose -- June 1, 2004 -- IMF Working Paper No. 04/110
This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper develops a simple methodology to test for asset in...
متن کاملForeign Direct Investment in Turkey : Regional Determinants by Joel Deichmann
The uneven regional distribution of foreign direct investment (FDI) in Turkey poses an interesting question from the perspective of multinational firms (MNFs) and policymakers alike. This paper focuses on the factors governing the location decision of MNFs within Turkey with specific reference to policy implications. Using a conditional logit model, we find that agglomeration, depth of local fi...
متن کاملFinancial Development, the Structure of Capital Markets, and the Global Digital Divide by Charles Amo Yartey; IMF Working Paper 06/258; November 2006
This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper examines the role of financial development and fin...
متن کاملForeign Direct Investment, Productivity, and Financial Development: An Empirical Analysis of Complementarities and Channels
This paper examines the effect of foreign direct investment (FDI) on growth by focusing on the complementarities between FDI inflows and financial markets. In our earlier work, we find that FDI is beneficial for growth only if the host country has well-developed financial institutions. In this paper, we investigate whether this effect operates through factor accumulation and/or improvements in ...
متن کامل