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Local Financial Development and the Aid-Growth Relationship Author info | Abstract | Publisher info | Download info | Related research | Statistics Selin Sayek
Mwanza Nkusu
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With official development assistance (ODA) set to rise as countries strive to meet the Millennium Development Goals (MDGs), aid effectiveness remains an important area of development policy. An increasing number of studies support the notion that ODA can contribute to growth in a nonlinear relationship. In this paper, we investigate a new hypothesis regarding this relationship: that deeper financial markets in aid-recipient countries facilitate the management of aid flows, thereby enhancing aid effectiveness. An empirical analysis, using a panel data set, finds robust support for the hypothesis.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
04/238.
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Length: 33 pages
Date of creation: 10 Jan 2005Date of revision:
Handle: RePEc:imf:imfwpa:04/238Contact details of provider: Postal: International Monetary Fund, Washington, DC USA Phone: (202) 623-7000 Fax: (202) 623-4661 Email: Web page: http://www.imf.org/external/pubind.htm More information through EDIRC
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Keywords: Development assistance ; Economic growth ; Poverty ; Financial assistance ; Economic models ; Other versions of this item:
This paper has been announced in the following NEP Reports :
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James, Ang, 2009.
"Financial Liberalization and the Aid-Growth Relationship in India ,"
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14411, University Library of Munich, Germany.
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