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Aid, Taxation and Development in Sub-Saharan Africa

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Author Info
C. S. Adam
S. A. O'Connell

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Abstract

External aid donors have gradually shifted from a benign view of the African state to one that presumes a conflict of interest between the state and its own private sector. What are the implications of this diagnosis for the design of aid programs? We develop a model that locates slow growth in the overly narrow interests of a political elite. We study the impact of aid on policy choice and private investment and the role of conditionality in securing the gains from aid. The results capture key features of the current diagnosis while underscoring the need for more sophisticated treatments of domestic political institutions, institutional change, and donor motivations. Copyright 1999 Blackwell Publishers Ltd..

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Publisher Info
Article provided by Blackwell Publishing in its journal Economics and Politics.

Volume (Year): 11 (1999)
Issue (Month): 3 (November)
Pages: 225-253
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Handle: RePEc:bla:ecopol:v:11:y:1999:i:3:p:225-253

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  1. Channing Arndt & Sam Jones & Finn Tarp, 2006. "Aid and Development: The Mozambican Case," Discussion Papers 06-13, University of Copenhagen. Department of Economics. [Downloadable!]
  2. Santanu Chatterjee & Paola Giuliano & Ilker Kaya, 2007. "Where Has All the Money Gone? Foreign Aid and the Quest for Growth," IZA Discussion Papers 2858, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Benno J. Ndulu & Stephen A. O'Connell, 1999. "Governance and Growth in Sub-Saharan Africa," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 41-66, Summer. [Downloadable!] (restricted)
  4. Giulio Federico, 2004. "Samaritans, Rotten Kids and Policy Conditionality," Development and Comp Systems 0409004, EconWPA. [Downloadable!]
  5. Almuth Scholl, 2009. "Aid Effectiveness and Limited Enforceable Conditionality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(2), pages 377-391, April. [Downloadable!] (restricted)
    Other versions:
  6. Finn Tarp, 2006. "Aid and Development," Discussion Papers 06-12, University of Copenhagen. Department of Economics. [Downloadable!]
    Other versions:
  7. Christopher Adam & David Cobham & Nu'man Kanafani, 2004. "Budgetary and fiscal policy for a new Palestinian state," Money Macro and Finance (MMF) Research Group Conference 2004 14, Money Macro and Finance Research Group. [Downloadable!]
  8. Azam, Jean-Paul & Delacroix, Alexandra, 2004. "Aid and the Delegated Fight against Terrorism," IDEI Working Papers 324, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jul 2005. [Downloadable!]
  9. Marcelo Côrtes Neri & Marcelo Casal Xerez, 2004. "Aspectos Dinâmicos De Um Sistema De Metas Sociais," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 055, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  10. Sayanak, Tejashree & Lahiri, Sajal, 2008. "Foreign Aid as Prize: Incentives for a Pro-Poor Policy," Working Papers RP2008/63, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  11. Bigsten, Arne, 2006. "Donor coordination and the uses of aid," Working Papers in Economics 196, Göteborg University, Department of Economics. [Downloadable!]
  12. Jean-François Ruhashyankiko, 2005. "Why Do Some Countries Manage to Extract Growth from Foreign Aid?," IMF Working Papers 05/53, International Monetary Fund. [Downloadable!]
  13. Luis Angeles & Kyriakos C. Neanidis, 2006. "Aid Effectiveness: The Role of the Local Elite," The School of Economics Discussion Paper Series 0633, Economics, The University of Manchester. [Downloadable!]
    Other versions:
  14. Azam, Jean-Paul & Thelen, Véronique, 2007. "The Roles of Foreign Aid and Education in the War on Terror," IDEI Working Papers 449, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
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