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Book | Leiden University catalogue | WorldCat |
Title: | Should we expect aid to increase economic growth? |
Author: | White, Howard |
Year: | 1992 |
Issue: | 127 |
Pages: | 23 |
Language: | English |
Series: | Working papers, General series (ISSN 0921-0210) |
City of publisher: | The Hague |
Publisher: | Institute of Social Studies |
Geographic term: | developing countries |
Subjects: | economic development development cooperation |
External link: | https://hdl.handle.net/1765/18827 |
Abstract: | The orthodox view of the impact of development aid on economic growth sees aid as relieving either a savings or a foreign exchange constraint and so directly increasing growth through higher investment. However, empirical studies have found little evidence of such a relationship; there has hence been some pessimism about aid's ability to increase growth. It is argued here that these findings are not surprising, given both the uncertainty about the determinants of growth and aid's changing nature. It is better to concentrate analysis on the impact of aid on variables that are important to the growth process. Attempts to do this in the case of savings have been flawed by their partial framework. The simultaneous macroeconomic model presented for Sri Lanka shows that aid has in fact had a very strong impact on investment and output. |