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Publications (88)
Research Brief
In 2008 Doucouliagos and Paldam published a paper, hereafter known as DP08, based on a meta-analytic approach to the aid-growth question. Working with a database including 68 studies on the relationship between foreign aid and economic growth they arrived at a pessimistic result. This is in line...
Working Paper
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A dynamic relationship between foreign aid and domestic fiscal variables in Uganda is analysed using a cointegrated vector autoregressive model over the period 1972-2008. Results show that aid is a significant element of long-run fiscal equilibrium, is associated with increased tax effort and public...
Working Paper
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Commodity price shocks are an important type of external shock and are often cited as a problem for economic growth in sub-Saharan Africa. This paper quantifies the impact of agricultural commodity price shocks using a near vector autoregressive model. The novel aspect of this model is that we...
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– Evidence from Moroccan and Tunisian Time-Series Data
We examine aid-induced Dutch Disease—after controlling for the effects of remittances and FDI flows—in the context of two North African countries, Morocco and Tunisia. We do so by performing a multivariate time series analysis of aggregated annual data over the period 1980-2009. Aid causes real...
Research Brief
In 1959 the Netherlands discovered vast natural gas resources in the North Sea. This discovery led to a rapid increase in the country’s national wealth. However in the 1960s the Netherlands experienced an economic crisis. The natural gas reserves were one of the causes of this crisis, as the Dutch...
Working Paper
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International aid has an ambiguous effect on the macroeconomy of the recipient country. To the extent that aid raises consumer expenditure, there will be some real exchange rate appreciation and a shift of resources away from traded goods production and into non-traded goods production. However, aid...
Research Brief
– The Case of Sierra Leone
Phillip Michael Kargbo's UNU-WIDER working paper, 'Impact of Foreign Aid on Economic Growth in Sierra Leone: Empirical Analysis' examines the impact of foreign aid on growth in Sierra Leone using a variety of econometric approaches. The paper finds that in the period 1970-2007 aid has a significant...
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– What Does the Evidence Say?
Donors are concerned about how their aid is used, especially how it affects fiscal behaviour by recipient governments. This study reviews the recent evidence on the effects of aid on government spending and tax effort in recipient countries, concluding with a discussion of when (general) budget...
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– Have We Come Full Circle?
The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature has turned decidedly pessimistic with respect to the ability of foreign aid to foster economic growth. Policy implications, such as the complete cessation of aid to Africa...
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– What Meta-Analysis Reveals
Some recent literature in the meta-analysis category where results from a range of studies are brought together throws doubt on the ability of foreign aid to foster economic growth and development. This paper assesses what meta-analysis has to say about the effectiveness of foreign aid in terms of...
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– Vulnerability Matters
This paper confronts three conundrums. First, does the relationship between aid and growth fade over time when aid is successful? Second, why are aid inflows neglected in the literature on growth acceleration (or episodes). Third, why is country vulnerability overlooked in the same literature? Our...
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– Another Time-Series Perspective
In a recent article, Nowak-Lehmann, Dreher, Herzer, Klasen, and Martínez-Zarzoso (2012) (henceforth NDHKM) conclude that foreign aid has not had a significant effect on income, based on evidence from panel data potentially covering 131 countries over the period 1960-2006. The present study provides...
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– Emerging Challenges with a Focus on Africa
The central argument of this study is that given the magnitude of the investment in infrastructure that is required, especially in Africa, the role of foreign aid in the future should be distinctly different. While aid will be required to continue to fill the ‘savings gap’ in some small countries...
Working Paper
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Over many past decades countries in sub-Saharan Africa have received extensive bilateral and multilateral aid in support of the production of relevant, timely, and good quality data and statistics. But assessing aid effectiveness in the statistical area is a complex matter. Many datasets are...
Research Brief
It is widely recognized that entrepreneurship is of critical importance to industrial development. Despite this importance we know little about the skills of business owners and managers in developing countries. In the WIDER Working Paper ‘The Role of Training in Fostering Cluster-Based Micro and...
Research Brief
– A New Agenda
It is commonly acknowledged that developing economies are characterized by large differences in output per worker across sectors. For such economies the shift of resources from low productivity to high productivity is the key potential driver of economic growth. Nearly all developing countries that...
Displaying 16 of 88 results