IDEAS home Printed from https://ideas.repec.org/p/ulp/sbbeta/2016-52.html
   My bibliography  Save this paper

Can development aid help a country to escape the poverty trap?

Author

Listed:
  • Ngoc Sang Pham
  • Thi Kim Cuong Pham

Abstract

This paper fits in the debate on the relationship between development aid and economic growth. It aims to analyze the aid effectiveness for a small recipient country. This country uses capital tax and international aid to finance public investment, which may improve the capital productivity. For the case of a developing country, we analyze the effects of aid, taking account of the corruption in use of aid as well as its characteristics in terms of technology, fixed cost and efficiency of public investment. Given donor's rules, we determine conditions under which the foreign aid can generate good perspectives in the long run for the aid recipient. We also discuss the existence of the poverty trap and the conditions leading to an economic take-off as well as the existence of a middle-income trap and conditions for the economy to converge to this trap.

Suggested Citation

  • Ngoc Sang Pham & Thi Kim Cuong Pham, 2016. "Can development aid help a country to escape the poverty trap?," Working Papers of BETA 2016-52, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2016-52
    as

    Download full text from publisher

    File URL: http://beta.u-strasbg.fr/WP/2016/2016-52.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ulp:sbbeta:2016-52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bestrfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.