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Reasonable Expectations and the First Millennium Development Goal: How Much Can Aid Achieve?

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  • Dalgaard, Carl-Johan
  • Erickson, Lennart

Abstract

Summary Using a calibrated neoclassical growth model, we address three questions: (i) how much growth should aid flows have produced in Sub-Saharan Africa over the last three decades? (ii) how much aid would be needed to attain the First Millennium Development Goal (MDG#1) of cutting poverty in half by 2015? (iii) taking proposed aid flows as given, how much would structural characteristics, such as domestic savings rates and productivity, have to change in order to reach the MDG#1? Our analysis indicates that past and future expectations for aid in fostering growth and poverty reduction have been too high.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 7 (July)
Pages: 1170-1181

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:7:p:1170-1181

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: foreign aid economic growth millennium development goals;

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References

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Cited by:
  1. Channing Arndt & Sam Jones & Finn Tarp, 2010. "Aid and Growth Have We Come Full Circle?," Working Papers id:2513, eSocialSciences.
  2. Carl-Johan, Dalgaard & Henrik, Hansen, 2010. "Evaluating Aid Effectiveness in the Aggregate: A critical assessment of the evidence," MPRA Paper 23026, University Library of Munich, Germany.

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