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Local Financial Development and the Aid-Growth Relationship Author info | Abstract | Publisher info | Download info | Related research | Statistics Sayek, Selin
Nkusu, Mwanza
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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 Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Berlin 2006 with number
23.
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Date of creation: 2006Date of revision:
Handle: RePEc:zbw:gdec06:4746Contact details of provider: Web page: http://www.wiwi.uni-hannover.de/gif/ael/
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Keywords: Foreign aid ; economic growth ; poverty ; and financial development ; Other versions of this item:
Find related papers by JEL classification: I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General F35 - International Economics - - International Finance - - - Foreign Aid O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
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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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