IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Foreign Aid Policy and Sources of Poverty: A Quantitative Framework

Listed author(s):
  • Alex Mourmouras
  • Peter Rangazas

The econometric literature has been unable to establish a robust association between foreign aid and growth and poverty reduction. In this paper, we argue that aid effectiveness must be assessed using methods that go beyond cross-country regressions. We calibrate a dynamic general equilibrium model that is capable of generating large sustained income gaps between rich and poor countries. The model quantifies three sources of poverty: (1) lack of access to international capital, (2) low schooling and high fertility (a poverty trap), and (3) an antigrowth domestic fiscal policy set by an elite. We analyze policies designed to address each source of poverty and compare the aid cost of their implementation. The policies differ dramatically in the extent and timing of their growth effects, and in the aid cost of their implementation. IMF Staff Papers (2007) 54, 59–90. doi:10.1057/palgrave.imfsp.9450005

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.palgrave-journals.com/imfsp/journal/v54/n1/pdf/9450005a.pdf
File Function: Link to full text PDF
Download Restriction: Access to full text is restricted to subscribers.

File URL: http://www.palgrave-journals.com/imfsp/journal/v54/n1/full/9450005a.html
File Function: Link to full text HTML
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Palgrave Macmillan in its journal IMF Staff Papers.

Volume (Year): 54 (2007)
Issue (Month): 1 (May)
Pages: 59-90

as
in new window

Handle: RePEc:pal:imfstp:v:54:y:2007:i:1:p:59-90
Contact details of provider: Web page: http://www.palgrave-journals.com/

Order Information: Web: http://www.springer.com/economics/journal/41308/PS2

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:54:y:2007:i:1:p:59-90. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

or (Rebekah McClure)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.