The hope for hysteresis in foreign aid

Arbeitspapier

We argue that a purpose of foreign aid is to whet the appetite of the recipient in order to bring about a long term commitment to what the donor perceives as a need, but which the recipient may rank lower down on his list of undertakings, or may be sufficiently resource constrained as to be unable to start the project. In other words, we explore the implications and conditions for success of a donor trying to affect long-term recipient policy by creating path dependence. Once the project is established, aid can be removed without reversing the process that has been set in motion. Quite simply, the donor wants its project to stick. We place a formal structure on this.

Show object

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2006-28

Classification and Topics

• Classification: Wirtschaft ; Economic Development: General ; International Linkages to Development; Role of International Organizations ; Foreign Aid ; Macroeconomic Analyses of Economic Development ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Macroeconomics: Consumption; Saving; Wealth ; Investment; Capital; Intangible Capital; Capacity
• Subject: Foreign aid ; rent seeking ; governance ; decentralization

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Epstein, Gil S. ; Gang, Ira N.
• Event: Veröffentlichung
• (who): Rutgers University, Department of Economics
• (where): New Brunswick, NJ
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/31292