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Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches

  • Patrick Guillaumont
  • Sylviane Guillaumont Jeanneney

In this paper they examine whether absorptive capacity can constitute sufficient justification for rejecting the proposal of a large aid increase to support the ‘big push’. They argue that the probability of a poverty trap exists for many countries, in particular the least developed countries (LDCs) and that an increase in aid is relevant for them. Moreover they also show that the decrease in marginal aid returns is slower in vulnerable countries, which supports the rationale to include vulnerability as one of the aid-allocation criteria. [Discussion Paper No. 2007/05]

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Paper provided by eSocialSciences in its series Working Papers with number id:3000.

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Date of creation: Oct 2010
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Handle: RePEc:ess:wpaper:id:3000
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  1. Pierre-Richard Agénor & Nihal Bayraktar & Emmanuel Pinto Moreira & Karim El Aynaoui, 2006. "Achieving the Millennium Development Goals in Sub-Saharan Africa: A Macroeconomic Monitoring Framework," The World Economy, Wiley Blackwell, vol. 29(11), pages 1519-1547, November.
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