The analysis of the transfer paradox has evolved primarily in the context of traditional static models. However, given developments in the policy arena as well in the discipline itself, there is a need for further developments in the theoretical analysis of foreign aid. For example, the impact of aid on saving, investment and growth calls for an intertemporal framework. Development spatial economics calls for introduction of the spatial dimension to the analysis of foreign aid. Similarly, the potential role of aid in conflict resolution, in improving the environment, in public good (infrastructural) provision, in the globalization process, and in the establishment of good governance are some of the issues that also need serious attention. On the empirical side, the issue of the effectiveness 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.This volume contains a comprehensive analysis of foreign aid from both theoretical and empirical perspectives, written by leading researchers in the field. It is divided into two parts: Theory of Aid and Empirical Studies on Aid.It examines aid practices in a variety of countries and under a variety of conditions.
Vandeveer Professor of Economics at SIUC since 2002; was at the University of Essex during 1978-2002; has worked as consultants to the FAO, IFAD, and the World Bank; has written extensively in top economics journals on issues related to development in general and to foreign aid in particular.
Preliminary contents: Part 1: theory of aid. 1. Aid, transfers and political economy (I. Gang, G. Epstein). 2. Welfare and governance implications of alternative mechanisms of aid disbursement (S. Margit). 3. Foreign aid as an instrument for conflict resolution (Z. Becsi, S. Lahiri). 4. Absorptive capacity and the mode of delivery of foreign aid (S. Lahiri). 5. A pareto-improving foreign aid in a dynamic North-South model (k. Shimomura). 6. Welfare effects of international transfer under stagnation (Y. Ono). 7. A dynamic analysis of tied aid (C.C. Chu, E.S.H. Yu). 8. Does foreign aid hinder foreign direct investment? (H. Beladi, R. Oladi). 9. Helping under revenue constraint a disaster-affected country (S. Lahiri, Y. Ono). 10. Transfer paradoxes and new economic geography(S. Brakman, C.G.M. van Marrewijk). 11. Foreign aid and de-industrialization (K. Choi). 12. Can competition for aid reduce pollution? (P. Hatzipanayoto, M.S. Michael, N. Tsakiris). Part 2 : Empirical studies on aid. 1. Aid-allocation criteria: a re-examination (S. Bandopadhyaya, H. Wall). 2. Aid effort and its determinants (M. Odedokun, JJ. Round). 3. Eu aid under the Lome-Cotonou trade regime and its effect on Sub-Saharan African growth (S. Bandopadhyaya, J. Munemo). 4. The effectiveness of foreign aid: is good policy or good history more important? (K. Sylwester). 5. Estimating the macroeconomic impact of aid: an application to Kenya(O. Morrissey). 6. Development aid: the new agenda (G. Mavrotas). 7. Can aid end world poverty? (H. White). 8. The contribution of aid to the education for all objective: panel data evidence for low-income countries (K. Michaelowa). 9. Aid, growth and poverty reduction: the Mozambican case (C. Arndt, S. Jones, F. Tarp). 10. Is foreign aid fungible? (V. Swaroop). 11. Aid and trade (A. Winters). 12. Labour market responses to large aid inflows in low income countries(C. Adam, D. Bevan).