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Impacts of official development assistance on agricultural growth, savings and agricultural imports

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  • Kherallah, Mylene W.
  • Beghin, John C.
  • Peterson, E. Wesley F.
  • Ruppel, Fred J.

Abstract

This paper explores the links between development assistance, agricultural output growth and imports in 56 developing economies over the period 1974-1990. The empirical model treats agricultural growth and imports, savings and aid as endogenous. The analysis also accounts for differences in macroeconomic policies. The results show that aid had a positive impact on agricultural growth. A robust relationship exits between aid and agricultural imports consistent with the argument that aid helps industrialized countries through market expansion and strengthened trade ties.

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Bibliographic Info

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 11 (1994)
Issue (Month): 2-3 (December)
Pages: 99-110

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Handle: RePEc:eee:agecon:v:11:y:1994:i:2-3:p:99-110

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  1. Mosley, Paul, 1980. "Aid, Savings and Growth Revisited," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(2), pages 79-95, May.
  2. Griffin, Keith B & Enos, J L, 1970. "Foreign Assistance: Objectives and Consequences," Economic Development and Cultural Change, University of Chicago Press, vol. 18(3), pages 313-27, April.
  3. Levy, Victor, 1988. "Aid and growth in Sub-Saharan Africa: The recent experience," European Economic Review, Elsevier, vol. 32(9), pages 1777-1795, November.
  4. Over, A Mead, Jr, 1975. " An Example of the Simultaneous-Equation Problem: A Note on "Foreign Assistance: Objectives and Consequences."," Economic Development and Cultural Change, University of Chicago Press, vol. 23(4), pages 751-56, July.
  5. Massell, Benton F & Pearson, Scott R & Fitch, James B, 1972. "Foreign Exchange and Economic Development: An Empirical Study of Selected Latin American Countries," The Review of Economics and Statistics, MIT Press, vol. 54(2), pages 208-12, May.
  6. Gulati, Umesh C, 1978. "Effect of Capital Imports on Savings and Growth in Less Developed Countries," Economic Inquiry, Western Economic Association International, vol. 16(4), pages 563-69, October.
  7. Lele, Uma & Goldsmith, Arthur A, 1989. "The Development of National Agricultural Research Capacity: India's Experience with the Rockefeller Foundation and Its Significance for Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 37(2), pages 305-43, January.
  8. Ruttan, Vernon W., 1987. "Why Foreign Economic Assistance?," Bulletins 7481, University of Minnesota, Economic Development Center.
  9. Stoneman, Colin, 1975. "Foreign capital and economic growth," World Development, Elsevier, vol. 3(1), pages 11-26, January.
  10. Weisskopf, Thomas E., 1972. "The impact of foreign capital inflow on domestic savings in underdeveloped countries," Journal of International Economics, Elsevier, vol. 2(1), pages 25-38, February.
  11. Kwabena Gyimah-Brempong, 1992. "Aid and economic growth in LDCs: Evidence from Sub-Saharan Africa," The Review of Black Political Economy, Springer, vol. 20(3), pages 31-52, March.
  12. de Janvry, Alain & Sadoulet, Elisabeth, 1988. "The Conditions for Compatibility between Aid and Trade in Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 37(1), pages 1-30, October.
  13. Griffin, Keith, 1970. "Foreign Capital, Domestic Savings and Economic Development," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 32(2), pages 99-112, May.
  14. Mikesell, Raymond F & Zinser, James E, 1973. "The Nature of the Savings Function in Developing Countries: A Survey of the Theoretical and Empirical Literature," Journal of Economic Literature, American Economic Association, vol. 11(1), pages 1-26, March.
  15. Dacy, Douglas C, 1975. "Foreign Aid, Government Consumption, Saving and Growth in Less-Developed Countries," Economic Journal, Royal Economic Society, vol. 85(339), pages 548-61, September.
  16. Papanek, Gustav F, 1972. "The Effect of Aid and other Resource Transfers on Savings and Growth in Less Developed Countries," Economic Journal, Royal Economic Society, vol. 82(327), pages 934-50, September.
  17. Norton, George W & Ortiz, Jaime & Pardey, Philip G, 1992. "The Impact of Foreign Assistance on Agricultural Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 40(4), pages 775-86, July.
  18. Bachman, Kenneth Leroy & Paulino, Leonardo A., 1979. "Rapid food production growth in selected developing countries: a comparative analysis of underlying trends, 1961-76," Research reports 11, International Food Policy Research Institute (IFPRI).
  19. Papanek, Gustav F, 1973. "Aid, Foreign Private Investment, Savings, and Growth in Less Developed Countries," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 120-30, Jan.-Feb..
  20. Levy, Victor, 1987. "Does Concessionary Aid Lead to Higher Investment Rates in Low-Income Countries?," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 152-56, February.
  21. Houck, James P., 1986. "Foreign Agricultural Assistance: Ally Or Adversary," Staff Papers 13806, University of Minnesota, Department of Applied Economics.
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Cited by:
  1. Alston, Julian M. & Smith, Vincent H. & Acquaye, Albert & Hosseini, Safdar, 1999. "Least-cost cheap-food policies: some implications of international food aid," Agricultural Economics, Blackwell, vol. 20(3), pages 191-201, May.

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