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Foreign Aid, Fertility and Human Capital Accumulation

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  • LEONID V. AZARNERT

Abstract

This paper analyses the effect of foreign aid on population growth and human capital accumulation. Consistent with empirical evidence from sub-Saharan Africa, the model shows that foreign aid can work against its stated goal of alleviating poverty and promoting growth. Humanitarian aid fosters population growth and adversely affects the recipients' incentive to invest in human capital. The analysis suggests that foreign aid may lock a recipient economy in a low-equilibrium trap. Copyright (c) The London School of Economics and Political Science 2008.

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  • Leonid V. Azarnert, 2008. "Foreign Aid, Fertility and Human Capital Accumulation," Economica, London School of Economics and Political Science, vol. 75(300), pages 766-781, November.
  • Handle: RePEc:bla:econom:v:75:y:2008:i:300:p:766-781
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    Cited by:

    1. Ahmad, Khalil & Ali, Amjad & Chani, Muhammad Irfan, 2014. "Does sector specific foreign aid matter for fertility? An empirical analysis form Pakistan," MPRA Paper 82528, University Library of Munich, Germany, revised 2014.
    2. Varvarigos, Dimitrios & Arsenis, Panagiotis, 2015. "Corruption, fertility, and human capital," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 145-162.
    3. Dany Bahar, 2009. "Aid and Fertility," CID Working Papers 38, Center for International Development at Harvard University.
    4. Leonid V. Azarnert, 2014. "Integrated public education, fertility and human capital," Education Economics, Taylor & Francis Journals, vol. 22(2), pages 166-180, April.
    5. Azarnert, Leonid V., 2010. "Immigration, fertility, and human capital: A model of economic decline of the West," European Journal of Political Economy, Elsevier, vol. 26(4), pages 431-440, December.
    6. Thomas Gries & Rainer Grundmann, 2014. "Trade and fertility in the developing world: the impact of trade and trade structure," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(4), pages 1165-1186, October.
    7. Kitaura, Koji & Ogawa, Hikaru & Yakita, Sayaka, 2011. "Multiple equilibria arising from donor’s aid policy in economic development," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 819-827.
    8. Stephen M. Miller & Kyriakos C. Neanidis, 2012. "Demographic Transition and Economic Welfare: The Role of Humanitarian Aid," Working papers 2012-06, University of Connecticut, Department of Economics.
    9. Leonid V. Azarnert, 2009. "Abortion And Human Capital Accumulation: A Contribution To The Understanding Of The Gender Gap In Education," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(5), pages 559-579, November.
    10. Vasilakis, Chrysovalantis, 2017. "Fighting Poverty And Child Malnutrition: On The Design Of Foreign Aid Policies," Macroeconomic Dynamics, Cambridge University Press, vol. 21(08), pages 1935-1956, December.
    11. Atsuko Tanaka, "undated". "Notes on Foreign Aid Selectivity Based on Human Capital," Working Papers 2015-23, Department of Economics, University of Calgary, revised 27 Sep 2015.
    12. Azarnert, Leonid V., 2010. "Is skilled immigration always good for growth in the receiving economy?," Economics Letters, Elsevier, vol. 108(2), pages 116-118, August.
    13. Leonid V. Azarnert, 2011. "Male vs. Female Guest-Worker Migration: Does it Matter for Fertility in the Source Country?," Working Papers 2011-25, Bar-Ilan University, Department of Economics.
    14. Hassan, Sherif, 2016. "Seventy Years of Official Development Assistance: Reflections on the Working Age Population," MPRA Paper 74835, University Library of Munich, Germany.
    15. Kretschmer, Bettina & Hübler, Michael & Nunnenkamp, Peter, 2010. "Does foreign aid reduce energy and carbon intensities in developing countries?," Kiel Working Papers 1598, Kiel Institute for the World Economy (IfW).
    16. Leonid Azarnert, 2010. "Après nous le Déluge: fertility and the intensity of struggle against immigration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(4), pages 1339-1349, September.
    17. Paul A. Raschky & Manijeh Schwindt, 2016. "Aid, Catastrophes and the Samaritan's Dilemma," Economica, London School of Economics and Political Science, vol. 83(332), pages 624-645, October.
    18. Leonid V. Azarnert, 2016. "Trade, Luxury Goods and a Growth Enhancing Tariff," CESifo Working Paper Series 5943, CESifo Group Munich.
    19. Leonid V. Azarnert, 2008. "Involuntary Integration in Public Education, Fertility and Human Capital," Working Papers 2008-07, Bar-Ilan University, Department of Economics.
    20. Azarnert, Leonid V., 2012. "Male versus female guest-worker migration: Does it matter for fertility in the source country?," Research in Economics, Elsevier, vol. 66(1), pages 1-6.
    21. José María, Larrú, 2012. "La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica
      [Aid and inequality relationship. Evidence and theoretical justification]
      ," MPRA Paper 38857, University Library of Munich, Germany.
    22. David Cuberes & Kevin Tsui, 2011. "Aid and Fertility: What Does the Cross-Country Evidence Show?," Working Papers 2011024, The University of Sheffield, Department of Economics.
    23. Leonid V. Azarnert, 2009. "Foreign Aid, Fertility and Population Growth:Evidence from Africa," Working Papers 2009-12, Bar-Ilan University, Department of Economics.
    24. Leonid V. Azarnert, 2010. "Après nous le Déluge: Fertility and the Intensity of Struggle against Immigration," CESifo Working Paper Series 3064, CESifo Group Munich.

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