Theory and practice of foreign aid

467 Pages·2007·3.1 MB·English

by  Sajal Lahiri

THEORYANDPRACTICEOFFOREIGNAID
FRONTIERS OF ECONOMICS
AND GLOBALIZATION
1
SeriesEditors:
HAMIDBELADI
UniversityofTexasatSanAntonio,USA
E.KWANCHOI
IowaStateUniversity,USA
Amsterdam–Boston–Heidelberg–London–NewYork–Oxford–Paris
SanDiego–SanFrancisco–Singapore–Sydney–Tokyo
THEORY AND PRACTICE
OF FOREIGN AID
Editedby
SajalLahiri
VandeveerProfessorofEconomics,
SouthernIllinoisUniversityatCarbondale,USA
Amsterdam–Boston–Heidelberg–London–NewYork–Oxford–Paris
SanDiego–SanFrancisco–Singapore–Sydney–Tokyo
Elsevier
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Firstedition2007
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ISBN-13:978-0-444-52765-3
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Inmemoryofmyparents
Dipaliand Samarendra NathLahiri
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ABOUTTHESERIES:
FRONTIERSOFECONOMICSANDGLOBALIZATION
Thisseriesisaimedateconomistsandfinancialeconomistsworldwideandwillpro-
videanindepthlookatcurrentglobaltopics.Eachvolumeintheserieswillfocuson
specialized topics for greater understanding of the chosen subject and provide a de-
taileddiscussionofemergingissues.Thetargetaudiencesareprofessionalresearchers,
graduatestudents,andpolicymakers.Itwilloffercutting-edgeviewsonnewhorizons
anddeepentheunderstandingintheseemergingtopics.
Withcontributionsfromleadingresearchers,eachvolumepresentsafreshlookat
today’s current topics. This series will present primarily original works, and employ
referencesappropriatetothetopicbeingexplored.
Each volume will bring a set of highly concentrated articles that will provide in
depth knowledge to a target audience, while the entire series will appeal to a wide
audiencebyprovidingthemwithdeeperknowledgeonabroadsetofemergingtopics
intheglobaleconomy.
TheFrontiersofEconomicsandGlobalizationserieswillpublishontopicssuchas:
– FrontiersofTradeNegotiations
– FrontiersofDerivativePricing
– FrontiersofInternationalLendingandDebtproblems
– FrontiersofEconomicsIntegration
– FrontiersofTradeandEnvironment
– FrontiersofForeignExchange
– FrontiersofInternationalFinance
– FrontiersofGrowthofOpenEconomies
– FrontiersofFuturesPricing
– FrontiersofInternationalFinancialMarkets
– FrontiersofInvestmentBanking
– FrontiersofMergersandAcquisitions
– FrontiersofGovernmentPolicyandRegulations
– FrontiersofMulti-SectorGrowthModels
– FrontiersofIntellectualPropertyRights
– FrontiersofFragmentationsandOutsourcing
SeriesEditors
HamidBeladi
E.KwanChoi
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ABOUTTHEVOLUME
AbouttheEditor:SajalLahiriistheVandeveerProfessorofEconomicsattheSouth-
ernIllinoisUniversity–Carbondale;hasworkedasconsultantstotheFAO,IFAD,and
theWorldBank;haswrittenextensivelyintopeconomicsjournalsonissuesrelatedto
developmentingeneralandtoforeignaidinparticular.
About the Volume: The volume contains contributions on both the theoretical and
empiricalsidesoftheliteratureonaid,andhasequalemphasisonboth.Onthetheo-
reticalside,theanalysisofthetransferparadoxhasevolvedprimarilyinthecontextof
traditionalstaticmodels.However,givendevelopmentsinthepolicyarenaaswellin
thedisciplineitself,thereisaneedforfurtherdevelopmentsinthetheoreticalanalysis
offoreignaid.Thetheoreticalcontributionsinthisvolumewilldopreciselythat.For
example,aiddependence,theimpactofaidonsaving,investmentandgrowthcallsfor
anintertemporalframework.Developmentofspatialeconomicscallsforintroduction
ofthespatialdimensiontotheanalysisofforeignaid.Similarly,thepotentialroleof
aid in conflict resolution, in improving the environment, in public good (infrastruc-
tural) provision and in the establishment of good governance are some of the issues
thetheoreticalcontributionsconsider.
On the empirical side, the issue of the effectiveness of aid; fiscal implications of
aid, the determinants of aid; the allocation criteria for aid; the relationship between
aid and trade, and aid and poverty remain as important as ever. The contributions
in this volume look at these issues from a number of different perspectives, using a
number of different methodologies and different types of data sets (time series data
fromAfrica,cross-countrydata,andpaneldata).
Aim and Scope of the Volume: This volume contains a comprehensive analysis of
foreign aid from both theoretical and empirical perspectives, written by leading re-
searchersinthefield.Thebookshouldbeanessentialtoolforbothundergraduateand
graduatestudentsofdevelopmentstudies,researchersinthefield,andpolicymakers
trainedineconomics.
Acknowledgements: I would like to thank all the authors for their cooperation, to
mywifeDipaforhersupportandunderstanding,andtoProfessor HamidBeladifor
immediateandhelpfulresponsestoallmyqueries.