IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v30y1991i2p189-206.html
   My bibliography  Save this article

Aid-tying and the Real Value of Foreign Assistance: The Case of the Sudan

Author

Listed:
  • Ibrahim Hassan Yassin

    (University of Gezira, Sudan.)

Abstract

This paper assesses the excess cost which results from aid-tying in some development projects in the Sudan. Tying can be of two types, either by source or by end-use. In the former case, restrictions are placed on where the recipients can spend the assistance. In the latter case, assistance is limited to specific items or projects. Thus, aid can be deemed to be doubly tied. In addition, there are other unquantifiable costs of tying. For example, the project to which the assistance will be tied might not suit the recipient's development programme, or the technology used may be inappropriate. Eight foreign-aided projects, which were tied by source as well as by end-use, were analysed to estimate the excess cost which results from the tying of aid. The overall weighted average of tying these projects appears to be 74 percent higher than the international market. In addition, the analysis shows that the terms of borrowing for these projects were hard; consequently, the grant element was low. Thus, if one takes into account the estimated excess cost of the tied foreign credits, which was greater than the commercial cost of borrowing at which these credits could have been sought in the absence of aid, the real value of these credits, the paper shows by using a shadow grant element approach, was negative.

Suggested Citation

  • Ibrahim Hassan Yassin, 1991. "Aid-tying and the Real Value of Foreign Assistance: The Case of the Sudan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(2), pages 189-206.
  • Handle: RePEc:pid:journl:v:30:y:1991:i:2:p:189-206
    as

    Download full text from publisher

    File URL: http://www.pide.org.pk/pdf/PDR/1991/Volume2/189-206.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yassin, Ibrahim H., 1982. "`When is trade more valuable than aid?': Revisited," World Development, Elsevier, vol. 10(2), pages 161-166, February.
    2. A. P. Thirlwall, 1989. "Growth and Development," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-19837-5, December.
    3. Ibrahim Hassan Yassin, 1989. "The Estimation of the Grant Element of Loans Reconsidered," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 28(2), pages 121-132.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kevin S. Nell, 2000. "Is Low Inflation a Precondition for Faster Growth? The Case of South Africa," Studies in Economics 0011, School of Economics, University of Kent.
    2. Iancu, Aurel, 2009. "Real Economic Convergence," Working Papers of National Institute for Economic Research 090104, Institutul National de Cercetari Economice (INCE).
    3. Matteo Lucchese, 2011. "Innovation, demand and structural change in Europe," Working Papers 1109, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.
    4. Amavilah, Voxi Heinrich, 2006. "The Economic Impact on the Dominican Republic of Baseball Player Exports to the USA," MPRA Paper 1672, University Library of Munich, Germany.
    5. Araujo, Ricardo Azevedo, 2013. "Cumulative causation in a structural economic dynamic approach to economic growth and uneven development," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 130-140.
    6. Jose Miguel Albala-Bertrand, 2003. "An Economical Approach to Estimate a Benchmark Capital Stock. An Optimal Consistency Method," Working Papers 503, Queen Mary University of London, School of Economics and Finance.
    7. Voxi Heinrich S Amavilah, 2004. "Human Capital: Infrastructural and Superstructural Constraints to Economic Performance across U.S. Native American Reservations and Trust Lands," GE, Growth, Math methods 0405001, University Library of Munich, Germany.
    8. Voxi Heinrich S Amavilah, 2005. "Human Capital and Income across U.S. Native American Reservations and Trust Lands," GE, Growth, Math methods 0505001, University Library of Munich, Germany.
    9. Lena Vogel, 2009. "The endogeneity of the natural rate of growth - an empirical study for Latin-American countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 41-53.
    10. Thomas M. Steger, 2000. "Productive Consumption and Growth in Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 365-375, October.
    11. George Irvin & Alejandro Izurieta, 2000. "Will the growing trade gap sink Viet Nam?-Some exploratory econometrics," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(2), pages 169-186.
    12. Ewa, Lechman, 2012. "Social development – a multidimensional approach to social development analysis. Country level evidence for year 2011," MPRA Paper 41812, University Library of Munich, Germany.
    13. Silvia Nenci, 2009. "Tariff liberatization and the growth of word trade: A comparative historiocal analysis to evaluate the multilateral trading system," Departmental Working Papers of Economics - University 'Roma Tre' 0110, Department of Economics - University Roma Tre.
    14. Khalid H.A. Siddig, 2012. "The Controversy of Exchange Rate Devaluation in Sudan: An Economy-wide General Equilibrium Assessment," African Development Review, African Development Bank, vol. 24(3), pages 245-254, September.
    15. Ricardo Azevedo Araujo, 2012. "New Insights from a Structural Economic Dynamic Approach to Balance of Payments Constrained Growth," Palgrave Macmillan Books, in: Elias Soukiazis & Pedro A. Cerqueira (ed.), Models of Balance of Payments Constrained Growth, chapter 8, pages 217-238, Palgrave Macmillan.
    16. Voxi Heinrich Amavilah, 2005. "Solow and the Native Americans: Technological Residuals and the Economic Performance of U.S. Native American Economies," Development and Comp Systems 0505008, University Library of Munich, Germany.
    17. Kevin Nell, 2003. "A 'Generalised' Version of the Balance-of-Payments Growth Model: An application to neighbouring regions," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(3), pages 249-267.
    18. Athena Belegri-Roboli & Panayotis Michaelides, 2006. "Measuring Technological Change in Greece," The Journal of Technology Transfer, Springer, vol. 31(6), pages 663-671, November.
    19. Richard Bluhm & Adam Szirmai, 2011. "Institutions, Inequality and Growth: A review of theory and evidence on the institutional determinants of growth and inequality," Papers inwopa634, Innocenti Working Papers.
    20. Muhammad Aslam Chaudhary & Sabahat Anwar, 2000. "Foreign Debt, Dependency, and Economic Growth in South Asia," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 551-570.

    More about this item

    Statistics

    Access and download statistics

    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:pid:journl:v:30:y:1991:i:2:p:189-206. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.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.