Arbeitspapier

The hope for hysteresis in foreign aid

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.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2006-28

Klassifikation
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
Thema
Foreign aid
rent seeking
governance
decentralization

Ereignis
Geistige Schöpfung
(wer)
Epstein, Gil S.
Gang, Ira N.
Ereignis
Veröffentlichung
(wer)
Rutgers University, Department of Economics
(wo)
New Brunswick, NJ
(wann)
2006

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Epstein, Gil S.
  • Gang, Ira N.
  • Rutgers University, Department of Economics

Entstanden

  • 2006

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