Aid, Policies and Growth: A Non-Canonical Alternative for solving This Puzzle.

Konferenzbeitrag

This paper presents a two-sector small semi-open economy Ramsey growth model involving foreign aid as an input in the production function. An activist government allocates this input endogenously across sectors and optimizes policies in a non-standard way. Once calibrated, mainly on countries exhibiting medium relative prices values, the model reproduces the main stylized facts outlined in the literature and suggests a strategy that could make aid work.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Proceedings of the German Development Economics Conference, Kiel 2005 ; No. 14

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Analyses of Economic Development ; Fiscal and Monetary Policy in Development ; One, Two, and Multisector Growth Models ; Foreign Aid ; Fiscal Policy
• Subject: Foreign aid ; Economic development ; Economic growth ; Quantitative approach

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fuentes, Raúl
• Event: Veröffentlichung
• (who): Verein für Socialpolitik, Ausschuss für Entwicklungsländer
• (where): Hannover
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/19807
• Last update: 10.03.2025, 11:42 AM CET