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Aid and Development: The Mozambican Case

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  • Channing Arndt

    (Purdue University)

  • Sam Jones

    (Ministry of Planning and Development, Mozambique)

  • Finn Tarp

    (Department of Economics, University of Copenhagen)

Abstract

This paper considers the relationship between external aid and development in Mozambique from 1980 to 2004. The main objective is to identify the specific mechanisms through which aid has influenced the developmental trajectory of the country and whether one can plausibly link outcomes to aid inputs. We take as our point of departure a growth accounting analysis and review both intended and unintended effects of aid. Mozambique has benefited from sustained aid inflows in conflict, post-conflict and reconstruction periods. In each of these phases aid has made an unambiguous, positive contribution both enabling and supporting rapid growth since 1992. At the same time, the proliferation of donors and aid-supported interventions has burdened local administration and there is a distinct need to develop government accountability to its own citizens rather than donor agencies. In ensuring sustained future growth, Mozambique will have to develop its capacity to maximise the benefits from its natural resources while ensuring at the same time the necessary framework is put in place to promote constructive integration in international markets.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 06-13.

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Length: 80 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:kud:kuiedp:0613

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Keywords: Mozambique; foreign aid; development;

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References

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  1. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
  2. Heltberg, Rasmus & Simler, Kenneth & Tarp, Finn, 2001. "Public Spending and Poverty in Mozambique," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Guido Schwerdt & Jarkko Turunen, 2007. "Growth In Euro Area Labor Quality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(4), pages 716-734, December.
  4. Sulemane, Jose A. & Kayizzi-Mugerwa, Steve, 2001. "The Mozambican Civil Service Incentives, Reforms and Performance," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Indermit S. Gill & Todd Pugatch, 2005. "At the Frontlines of Development : Reflections from the World Bank," World Bank Publications, The World Bank, number 7357, August.
  6. Tarp, Finn & Lau, Morten Igel, 1996. "Macroeconomic Performance and Critical Development Issues," MPRA Paper 29791, University Library of Munich, Germany.
  7. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
  8. Tarp, Finn, 1984. "Agrarian Transformation in Mozambique," MPRA Paper 29325, University Library of Munich, Germany.
  9. Todd Moss & Gunilla Pettersson & Nicolas van de Walle, 2006. "An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa," Working Papers 74, Center for Global Development.
  10. Finn Tarp, 2006. "Aid and Development," Discussion Papers 06-12, University of Copenhagen. Department of Economics.
  11. C. S. Adam & S. A. O'Connell, 1999. "Aid, Taxation and Development in Sub-Saharan Africa," Economics and Politics, Wiley Blackwell, vol. 11(3), pages 225-253, November.
  12. Channing Arndt & Henning Tarp Jensen & Finn Tarp, 2000. "Stabilization and structural adjustment in Mozambique: an appraisal," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 299-323.
  13. Arndt, Channing & Jensen, Henning Tarp & Tarp, Finn, 2000. "Structural Characteristics of the Economy of Mozambique: A SAM-Based Analysis," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 292-306, October.
  14. Channing Arndt & Robert C. James & Kenneth R. Simler, 2006. "Has Economic Growth in Mozambique been Pro-Poor?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 571-602, December.
  15. Nehru, Vikram & Swanson, Eric & Dubey, Ashutosh, 1995. "A new database on human capital stock in developing and industrial countries: Sources, methodology, and results," Journal of Development Economics, Elsevier, vol. 46(2), pages 379-401, April.
  16. Colm Harmon & Hessel Oosterbeek, 2000. "The Returns to Education: A Review of Evidence, Issues and Deficiencies in the Literature," CEE Discussion Papers 0005, Centre for the Economics of Education, LSE.
  17. Barbara Sianesi, 2002. "The returns to education: a review of the empirical macro-economic literature," IFS Working Papers W02/05, Institute for Fiscal Studies.
  18. Barbara Sianesi & John Van Reenen, 2000. "The Returns to Education: A Review of the Macro-Economic Literature," CEE Discussion Papers 0006, Centre for the Economics of Education, LSE.
  19. Arndt, Channing & Cruz, Antonio & Jensen, Henning Tarp & Robinson, Sherman & Tarp, Finn, 1998. "Social accounting matrices for Mozambique, 1994 and 1995:," TMD discussion papers 28, International Food Policy Research Institute (IFPRI).
  20. Emmanuel Brou Aka & Bernardin Akitoby & Amor Tahari & Dhaneshwar Ghura, 2004. "Sources of Growth in Sub-Saharan Africa," IMF Working Papers 04/176, International Monetary Fund.
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Citations

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Cited by:
  1. Lukasz Marc, 2012. "New Evidence on Fungibility at the Aggregate Level," Tinbergen Institute Discussion Papers 12-083/2, Tinbergen Institute.
  2. Channing Arndt & Sam Jones & Finn Tarp, 2009. "Aid and Growth: Have We Come Full Circle?," Discussion Papers 09-22, University of Copenhagen. Department of Economics.
  3. Elbers, Chris & Gunning, Jan Willem & de Hoop, Kobus, 2009. "Assessing Sector-wide Programs with Statistical Impact Evaluation: A Methodological Proposal," World Development, Elsevier, vol. 37(2), pages 513-520, February.
  4. Patrick GUILLAUMONT & Laurent WAGNER, 2014. "Aid effectiveness for poverty reduction: lessons from cross-country analyses, with a special focus on vulnerable countries," Working Papers P96, FERDI.
  5. James Boyce, 2008. "Post-Conflict Recovery: Resource Mobilization and Peacebuilding," Working Papers wp159, Political Economy Research Institute, University of Massachusetts at Amherst.
  6. Arndt, Channing & Thurlow, James, 2009. "Inequality and Poverty Impacts of Trade Distortions in Mozambique," Agricultural Distortions Working Paper 52794, World Bank.
  7. Tseday Jemaneh Mekasha & Finn Tarp, 2013. "Aid and Growth: What Meta-Analysis Reveals," Journal of Development Studies, Taylor & Francis Journals, vol. 49(4), pages 564-583, April.
  8. Tarp, Finn, 2006. "Aid and Development," MPRA Paper 13171, University Library of Munich, Germany.
  9. Chris Elbers & Jan Willem Gunning & Kobus de Hoop, 2007. "Assessing Budget Support with Statistical Impact Evaluation: a Methodological Proposal," Tinbergen Institute Discussion Papers 07-075/2, Tinbergen Institute, revised 31 Dec 2007.
  10. Lukasz Marc, 2012. "New Evidence on Fungibility at the Aggregate Level," Tinbergen Institute Discussion Papers 12-083/2, Tinbergen Institute.
  11. Museru, Malimu & Toerien, Francois & Gossel, Sean, 2014. "The Impact of Aid and Public Investment Volatility on Economic Growth in Sub-Saharan Africa," World Development, Elsevier, vol. 57(C), pages 138-147.
  12. Lukasz Marc, 2014. "The Causal Links between Aid and Government Expenditures," Tinbergen Institute Discussion Papers 14-012/V, Tinbergen Institute.
  13. Pekka Virtanen & Dag Ehrenpreis, 2007. "Growth, Poverty and Inequality in Mozambique," Country Study 10, International Policy Centre for Inclusive Growth.

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