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Foreign Aid, Fertility and Human Capital Accumulation

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  • LEONID V. AZARNERT

Abstract

This paper analyses the effect of foreign aid on population growth and human capital accumulation. Consistent with empirical evidence from sub-Saharan Africa, the model shows that foreign aid can work against its stated goal of alleviating poverty and promoting growth. Humanitarian aid fosters population growth and adversely affects the recipients' incentive to invest in human capital. The analysis suggests that foreign aid may lock a recipient economy in a low-equilibrium trap. Copyright (c) The London School of Economics and Political Science 2008.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0335.2007.00661.x
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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 75 (2008)
Issue (Month): 300 (November)
Pages: 766-781

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Handle: RePEc:bla:econom:v:75:y:2008:i:300:p:766-781

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References

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  1. Galor, Oded & Tsiddon, Daniel, 1997. " The Distribution of Human Capital and Economic Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 93-124, March.
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  5. Alesina, Alberto & Weder, Beatrice, 2002. "Do Corrupt Governments Receive Less Foreign Aid?," Scholarly Articles 4553011, Harvard University Department of Economics.
  6. Azarnert, L.V.Leonid V., 2004. "Redistribution, fertility, and growth: The effect of the opportunities abroad," European Economic Review, Elsevier, vol. 48(4), pages 785-795, August.
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  18. Christensen, Cheryl, 2000. "The new policy environment for food aid: the challenge of sub-Saharan Africa," Food Policy, Elsevier, vol. 25(3), pages 255-268, June.
  19. Viaene, Jean-Marie & Zilcha, Itzhak, 2002. "Capital markets integration, growth and income distribution," European Economic Review, Elsevier, vol. 46(2), pages 301-327, February.
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  21. Morand, Olivier F, 1999. " Endogenous Fertility, Income Distribution, and Growth," Journal of Economic Growth, Springer, vol. 4(3), pages 331-49, September.
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  24. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Stephen M. Miller & Kyriakos C. Neanidis, 2012. "Demographic Transition and Economic Welfare: The Role of Humanitarian Aid," Centre for Growth and Business Cycle Research Discussion Paper Series 164, Economics, The Univeristy of Manchester.
  2. Leonid Azarnert, 2010. "Après nous le Déluge: fertility and the intensity of struggle against immigration," Journal of Population Economics, Springer, vol. 23(4), pages 1339-1349, September.
  3. Leonid V. Azarnert, 2014. "Integrated public education, fertility and human capital," Education Economics, Taylor & Francis Journals, vol. 22(2), pages 166-180, April.
  4. Vasilakis, Chrysovalantis, 2011. "Fighting poverty and child malnutrition: on the design of foreign aid policies," MPRA Paper 30066, University Library of Munich, Germany.
  5. Leonid V. Azarnert, 2010. "Immigration, Fertility, and Human Capital: A Model of Economic Decline of the West," CESifo Working Paper Series 3025, CESifo Group Munich.
  6. Leonid V. Azarnert, 2010. "Is Skilled Immigration Always Good for Growth in the Receiving Economy?," Working Papers 2010-05, Department of Economics, Bar-Ilan University.
  7. Kitaura, Koji & Ogawa, Hikaru & Yakita, Sayaka, 2011. "Multiple equilibria arising from donor’s aid policy in economic development," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 819-827.
  8. Leonid V. Azarnert, 2009. "Abortion And Human Capital Accumulation: A Contribution To The Understanding Of The Gender Gap In Education," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(5), pages 559-579, November.
  9. Leonid V. Azarnert, 2011. "Male vs. Female Guest-Worker Migration: Does it Matter for Fertility in the Source Country?," Working Papers 2011-25, Department of Economics, Bar-Ilan University.
  10. Bettina Kretschmer & Michael Hübler & Peter Nunnenkamp, 2010. "Does Foreign Aid Reduce Energy and Carbon Intensities in Developing Countries," Kiel Working Papers 1598, Kiel Institute for the World Economy.
  11. David Cuberes & Kevin Tsui, 2011. "Aid and Fertility: What Does the Cross-Country Evidence Show?," Working Papers 2011024, The University of Sheffield, Department of Economics.
  12. Azarnert, Leonid V., 2012. "Male versus female guest-worker migration: Does it matter for fertility in the source country?," Research in Economics, Elsevier, vol. 66(1), pages 1-6.
  13. Leonid V. Azarnert, 2009. "Foreign Aid, Fertility and Population Growth:Evidence from Africa," Working Papers 2009-12, Department of Economics, Bar-Ilan University.
  14. Leonid V. Azarnert, 2008. "Involuntary Integration in Public Education, Fertility and Human Capital," Working Papers 2008-07, Department of Economics, Bar-Ilan University.

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