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Foreign aid allocation, governance, and economic growth:

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  • Akramov, Kamiljon T.

Abstract

Foreign aid to developing countries is a subject of heated debate among politicians, economists, and development specialists. Does aid promote economic growth and reduce poverty? Some argue that foreign aid has no effect on growth and may sometimes even undermine growth in aid recipient countries. Others suggest that foreign aid positively influences economic growth. Still others suggest that foreign aid has a positive impact on growth but this impact is conditional on a good institutional and policy environment. This debate has high stakes, given that foreign aid in the form of official development assistance (ODA) by leading donor nations reached over US$120 billion in 2010, the highest level ever recorded.

Suggested Citation

  • Akramov, Kamiljon T., 2012. "Foreign aid allocation, governance, and economic growth:," Issue briefs 72, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:issbrf:72
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    Citations

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    Cited by:

    1. Guillaumont, Patrick & Guillaumont Jeanneney, Sylviane & Wagner, Laurent, 2017. "How to Take into Account Vulnerability in Aid Allocation Criteria and Lack of Human Capital as Well: Improving the Performance Based Allocation," World Development, Elsevier, vol. 90(C), pages 27-40.
    2. Ephraim Nkonya & Jawoo Koo & Edward Kato & Zhe Guo, 2013. "Trends and Patterns of Land Use Change and International Aid in Sub-Saharan Africa," WIDER Working Paper Series wp-2013-110, World Institute for Development Economic Research (UNU-WIDER).
    3. Benin, Samuel, 2014. "Aid effectiveness: How is the L’Aquila food security initiative doing?:," IFPRI discussion papers 1329, International Food Policy Research Institute (IFPRI).
    4. Lin, Justin Yifu & Wang, Yan, 2014. "China-Africa co-operation in structural transformation: Ideas, opportunities, and finances," WIDER Working Paper Series 046, World Institute for Development Economic Research (UNU-WIDER).
    5. Sharon Alvarez & Jay Barney & Arielle Newman, 2015. "The poverty problem and the industrialization solution," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 23-37, March.
    6. Mfouapon Alassa & Kamdem Cyrille Bergaly & Mohammadou Nourou, 2022. "Agricultural Foreign Aid Allocation in Sub-Saharan Africa: The importance of Democracy and Quality of Governance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(3), pages 84-100, March.
    7. Justin Yifu LIN & Yan WANG, 2015. "China’s Contribution to Development Cooperation: Ideas, Opportunities and Finances," Working Papers P119, FERDI.
    8. Khawar Abbas & Muqarab Abbas & Faisal Azeem Abbassi, 2022. "An Empirical Investigation into the Contribution of Foreign Aid to Economic Growth in Developing Countries: Exploring the Role of Democracy," Journal of Economic Impact, Science Impact Publishers, vol. 4(2), pages 32-38.
    9. Kafayat Amusa & Nara Monkam & Nicola Viegi, 2016. "The Political and Economic Dynamics of Foreign Aid: A Case Study of United States and Chinese Aid to Sub-Sahara Africa," Working Papers 201628, University of Pretoria, Department of Economics.
    10. Winters, Matthew S. & Martinez, Gina, 2015. "The Role of Governance in Determining Foreign Aid Flow Composition," World Development, Elsevier, vol. 66(C), pages 516-531.
    11. Haldar, Anasuya & Sethi, Narayan, 2022. "Effect of sectoral foreign aid allocation on growth and structural transformation in sub-Saharan Africa—Analysing the roles of institutional quality and human capital," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 1010-1026.
    12. John Bbale & John Bosco Nnyanzi, 2016. "Institutions and Foreign Direct Investment: Evidence from Sub-Saharan Africa Regions," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 9(4), pages 1-11, June.
    13. Guo, Zhe & Kato, Edward & Koo, Jawoo & Nkonya, Ephraim, 2013. "Trends and Patterns of Land Use Change and International Aid in Sub-Saharan Africa," WIDER Working Paper Series 110, World Institute for Development Economic Research (UNU-WIDER).
    14. Justin Yifu Lin & Yan Wang, 2014. "China-Africa Co-operation in Structural Transformation: Ideas, Opportunities, and Finances," WIDER Working Paper Series wp-2014-046, World Institute for Development Economic Research (UNU-WIDER).
    15. Momita, Yasuaki & Matsumoto, Tomoya & Otsuka, Keijiro, 2019. "Has ODA contributed to growth? An assessment of the impact of Japanese ODA," Japan and the World Economy, Elsevier, vol. 49(C), pages 161-175.
    16. Lee, Kye Woo & Hong, Minji, 2018. "Relative Effectiveness of Various Development Finance Flows: A Comparative Study," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 40(3), pages 91-115.

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