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Publications (59)
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We investigate the marginal productivity of investment across countries. The aim is to estimate the return on investments financed by foreign aid and by domestic resource mobilization, using aggregate data. Both returns are expected to vary across countries and time. Consequently we develop a...
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Understanding chronic poverty and its evolution is complex given the amount of information involved. This paper proposes a new approach to analysing the evolution of chronic poverty in a multivariate setting using a Shapley decomposition of a multidimensional chronic poverty measure proposed by...
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Does foreign aid promote aggregate economic growth? In contrast to widespread perceptions, academic studies of this question have been rapidly converging towards a positive answer. We employ a simulation approach to (i) validate the coherence of recent empirics and (ii) calculate plausible ranges...
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China’s importance as a major donor outside the traditional Western donors has been increasing and this has helped to bridge the funding gaps in developing countries. At the same time, South-South financial assistance still comes with less conditionality making China’s aid model different to Western...
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Growth and poverty reduction in Africa are weakly linked. This paper argues that the reason is that Africa has failed to create enough good jobs. Structural transformation―the relative growth of employment in high productivity sectors―has not featured in Africa’s post-1995 growth story. As a result...
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– Implications for Patron-Client Relationships in the Context of Bangladesh’s Agricultural Reformation
This paper investigates how a development intervention which targets extremely poor households with investment capital influences relationships between those households and the landowning elite. It places this investigation in the context of the ‘agricultural reformation’ of rural Bangladesh...
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Agriculture plays an important role in terms of employment and its contribution to gross domestic product in many African countries. Thus, any policy initiative targeted towards poverty reduction in Africa should consider the agricultural sector as the major priority area. Unfortunately, the sector...
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– a Simultaneous-Equation Model
This paper investigates the impact of foreign aid on economic growth in member countries of the Economic Community of West African States using panel data for 1990-2009 and a three equation simultaneous-equations model. The effect of foreign aid on economic growth among these ECOWAS countries was...
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– Uganda
This paper seeks to (i) establish the areas in which aid from the major donors is concentrated; (ii) examine how aid has been allocated to the environmental sectors, and (iii) review the factors behind the success of environmental projects. Using data from the Aiddata.org database, the distribution...
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The mixed record on the 2015 Millennium Development Goal (MDG) targets and the focus on global public goods in post-MDG debates questions the future of traditional development co-operation (official development assistance, ODA). Meanwhile, international financial crisis and fiscal retrenchment have...
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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...
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– Selective Perspectives Over Three Decades 1975-2005
The World Bank is uniquely positioned to identify and disseminate innovative development practices. Based on his thirty-year experience as a World Bank staff member, the author takes an institutional perspective on the innovation climate at the World Bank focusing on dominant development paradigms...
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The purpose of this paper is to capture the impact of foreign capital inflows (which include foreign aid and foreign direct investment) on economic growth in Cameroon. Using the autoregressive distributive lag approach to cointegration and time-series data for the period 1980–2008, the results of...
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The foreign aid landscape has undergone a paradigm shift in the last few decades, with changes in the behaviour of ‘traditional’ donors and a new focus on selectivity in aid disbursement, as well as ‘new’ donors and South-South co-operation playing an increasingly important role. Amidst these...
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This paper contributes to the debate on aid effectiveness by looking at the ‘how’ of aid effectiveness. In other words it provides an assessment of whether aid only filled a financing gap or whether it, in addition, helped influence the political economy in a way that engendered growth. Ghana...
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This study addresses the macroeconomic effect of foreign aid on the factors of growth. Specifically, we examine the effects of foreign aid on capital investment (human capital, physical capital) in sub-Saharan Africa. Our methodological approach evaluates the effect of disaggregate aid (aid for...
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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...
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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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– a Cointegrated Vector Autoregressive Approach
This paper employs a cointegrated vector autoregressive model to assess the growth effect of aid in Uganda over the period 1972-2008. Results show that aid in Uganda has had both direct and indirect beneficial association with growth; that it is the productivity and not the stead state level of...
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A recent study of 36 sub-Saharan African countries found a positive impact of aid in the absolute majority of these countries. However, for Tanzania and Ghana, two major aid recipients, aid did not seem to have been equally beneficial. This paper singles out these two countries for a more detailed...
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Aid co-ordination is a constant theme of discussion among national and international aid agencies in their search for more effectiveness and efficiency in delivering development assistance. This paper seeks to clarify some of the arguments currently made in support of aid co-ordination, and to...
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This paper confirms recent evidence of a positive impact of aid on growth and widens the scope of evaluation to a range of outcomes including proximate sources of growth (e.g., physical and human capital), indicators of social welfare (e.g., poverty and infant mortality), and measures of economic...
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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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– Are the Country Classifications Moribund or is Global Poverty in the Process of ‘Nationalizing’?
The majority of the world’s poor, by income poverty and multi-dimensional poverty, now live in countries officially classified by the World Bank as middle-income countries. Of course nothing happens when a country crosses a (somewhat) arbitrary threshold in per capita income but it does matter to...
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Mozambique has achieved remarkable macroeconomic success over recent decades, boasting one of the world’s highest rates of GDP growth. However, absolute poverty remains persistent, spilling over into social unrest. To better understand the link between aggregate growth and household welfare, this...
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– Lessons for Developing Countries
The paper considers the experience of the European Investment Bank and addresses policy lessons for developing countries as they seek finance for development. The paper argues that the key lesson for developing countries is that the traditional role of a development bank in closing market gaps in...
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– a Changing Landscape with New Players and Challenges
This paper analyses the way aid for agriculture and rural development in the global south has changed over time. It finds three key shifts. First, a change in funding priority that has seen aid commitments move to the social sectors. Second is a shift in priority within agriculture and rural...
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I discuss how aid can support growth in small, isolated economies. Small markets frustrate scale economies and competition. Combined with high transport costs, essential inputs become prohibitively expensive. Breaking the coordination problem requires pioneering investment. Since this generates...
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Globalization has led to a precarization of labour, which especially manifests in the unstable working conditions, a lower labour share in national income as well as in a growing income inequality, with the exception of some countries with high initial income inequality. The neglect of concern for...
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While it has been increasingly recognized that efficient management holds the key to the development of micro and small enterprises in developing countries, we know very little about the managerial capacity of business owners and managers in these countries. In order to explore whether we can...
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Aid providers frequently link supporting small firms to job creation. Small firms create about half of new jobs in Africa, but they also have higher failure rates. Ignoring firm exit exaggerates net employment growth. Using panel data for Ethiopia, we find that small and large enterprises create...
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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...
Displaying 32 of 59 results