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Aid To Agriculture And Aggregate Welfare

Author

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  • OZGUR KAYA

    (Department of Economics, School of Business Administration, American University of Sharjah, Sharjah 26666, UAE)

  • ILKER KAYA

    (Department of Economics, School of Business Administration, American University of Sharjah, Sharjah 26666, UAE)

Abstract

In this paper, we focus on foreign aid-effectiveness in developing aid-recipient countries. By disaggregating total aid into sub-categories, we develop a model in which aid affects the welfare of the poor, as measured by a human development index. Our estimates (robust for different specifications) show that an increase in aid to the agricultural sector, one of our aid sub-categories, can improve the welfare of the poor, both directly and indirectly, through pro-poor public expenditure. Accordingly, more attention to the agricultural sector and reversing the decline in agricultural aid may improve the overall effectiveness of aid and achieve a sustainable transition out of poverty by increasing aggregate welfare.

Suggested Citation

  • Ozgur Kaya & Ilker Kaya, 2019. "Aid To Agriculture And Aggregate Welfare," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(02), pages 281-300, March.
    • Handle: RePEc:wsi:serxxx:v:64:y:2019:i:02:n:s0217590817470026
    DOI: 10.1142/S0217590817470026
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    2. Kaya, Ilker & Kaya, Ozgur, 2020. "Foreign aid, institutional quality and government fiscal behavior in emerging economies: An empirical investigation," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 59-67.

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