The Future of Japanese Aid to South and Southeast Asia: A Comparative Analysis
Japan emerged as a leading foreign aid donor in the 1980s. Since aid diplomacy has received so much attention in Japan, it needs to be asked how effective the use of aid has been both politically and economically. Furthermore, has Japanese aid been qualitatively different from the aid by the other donors? Is there scope for changing the policy and institutional framework so that Japanese aid can become more effective? Not much in the way of rigorous economic analysis was done to understand the mode of aid allocation and its economic impact until recently. Based on some of this recent work, this paper addresses the issues related to the economic effectiveness of Japanese aid in South and Southeast Asia. Starting with the basic economics of aid allocation, some estimates of the impact of aid on development and non-development expenditures are presented. The effect on domestic revenue-raising efforts of the recipients can also be estimated with the help of a decision making model with boundedly rational policymakers. However, the mode of aid management and its changing objectives also need further consideration in order for aid to optimally raise the economic well-being of the people in the recipient countries. I conclude by asking some questions about the future course of Japanese aid in this context and outlining a broader agenda for assessing the objectives and management of Japanese aid.
|Date of creation:||Jul 2003|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maizels, Alfred & Nissanke, Machiko K., 1984. "Motivations for aid to developing countries," World Development, Elsevier, vol. 12(9), pages 879-900, September.
- Mosley, Paul & Hudson, John & Horrell, Sara, 1987. "Aid, the Public Sector and the Market in Less Developed Countries," Economic Journal, Royal Economic Society, vol. 97(387), pages 616-41, September.
- Gang, Ira N. & Khan, Haider Ali, 1990. "Some determinants of foreign aid to India, 1960-1985," World Development, Elsevier, vol. 18(3), pages 431-442, March.
- Frey, Bruno S. & Schneider, Friedrich, 1986. "Competing models of international lending activity," Journal of Development Economics, Elsevier, vol. 20(2), pages 225-245, March.
- Pack, Howard & Pack, Janet Rothenberg, 1993. "Foreign Aid and the Question of Fungibility," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 258-65, May.
- Heller, Peter S, 1975. "A Model of Public Fiscal Behavior in Developing Countries: Aid, Investment, and Taxation," American Economic Review, American Economic Association, vol. 65(3), pages 429-45, June.
- Khan, Haider Ali & Hoshino, Eiichi, 1992. "Impact of foreign aid on the fiscal behavior of LDC governments," World Development, Elsevier, vol. 20(10), pages 1481-1488, October.
- Binh, Tran-Nam & McGillivray, Mark, 1993. "Foreign aid, taxes and public investment A comment," Journal of Development Economics, Elsevier, vol. 41(1), pages 173-176, June.
- Pack, Howard & Pack, Janet Rothenberg, 1990. "Is Foreign Aid Fungible? The Case of Indonesia," Economic Journal, Royal Economic Society, vol. 100(399), pages 188-94, March.
- Sengupta, J K, 1970. "Optimal Stabilization Policy with a Quadratic Criterion Function," Review of Economic Studies, Wiley Blackwell, vol. 37(1), pages 127-45, January.
When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2003cf233. 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: (CIRJE administrative office)
If references are entirely missing, you can add them using this form.