The Global Partnership for Inclusive Growth
This paper investigates the determinants of inclusive growth with a focus on foreign aid. Based on the Solow growth model, a theoretical model has been developed which shows that foreign aid can stimulate inclusive growth if it is effectively used for augmenting either physical or human productive capacity. Based on UNDP´s (2011) human development index, this research calculates the inequality-adjusted human development index, and uses its growth rate to measure inclusive growth. The empirical section of this paper finds evidence for a significantly positive effect of foreign aid on inclusive growth in the sample countries. It further suggests that foreign aid fosters inclusive growth effectively, particularly when aid is directed to health and education. This research has important implications for an enhanced global partnership in areas such as foreign aid to achieve an inclusive society.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Katajanokanlaituri 6B, 00160 Helsinki|
Web page: http://www.wider.unu.edu/
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.:
- Arellano, M, 1987. "Computing Robust Standard Errors for Within-Groups Estimators," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(4), pages 431-34, November.
- Ianchovichina, Elena & Lundstrom, Susanna, 2009. "Inclusive growth analytics : framework and application," Policy Research Working Paper Series 4851, The World Bank.
- Mustapha K. Nabli & Rabah Arezki, 2012.
"Natural Resources, Volatility, and Inclusive Growth; Perspectives From the Middle East and North Africa,"
IMF Working Papers
12/111, International Monetary Fund.
- Rabah Arezki & Mustapha K. Nabli, 2012. "Natural Resources, Volatility, and Inclusive Growth: Perspectives from the Middle East and North Africa," OxCarre Working Papers 086, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Rabah Arezki & Mustapha K. Nabili, 2012. "Natural resources, volatility, and inclusive growth perspectives from the Middle East and North Africa," Institute Working Papers 07/2012, Institute for Culture and Society, University of Navarra.
- Rabah Arezki & Mustapha K. Nabli, 2012. "Natural Resources, Volatility, and Inclusive Growth: Perspectives from the Middle East and North Africa," CESifo Working Paper Series 3818, CESifo Group Munich.
- Collier, Paul, 1999. "Aid 'Dependency': A Critique," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 8(4), pages 528-45, December.
- Author-Name: Jeffrey D. Sachs & John W. McArthur & Guido Schmidt-Traub & Margaret Kruk & Chandrika Bahadur & Michael Faye & Gordon McCord, 2004. "Ending Africa's Poverty Trap," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(1), pages 117-240.
- Eskander Alvi & Aberra Senbeta, 2012. "Does Foreign Aid Reduce Poverty?," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(8), pages 955-976, November.
- Kentaro Akashi & Naoto Kunitomo, 2010. "The Limited Information Maximum Likelihood Approach to Dynamic Panel Structural Equations," CIRJE F-Series CIRJE-F-708, CIRJE, Faculty of Economics, University of Tokyo.
- James E. Foster & Miguel Székely, 2001.
"Is Economic Growth Good for the Poor?: Tracking Low Incomes Using General Means,"
IDB Publications (Working Papers)
6486, Inter-American Development Bank.
- James E. Foster & Miguel Székely, 2008. "Is Economic Growth Good For The Poor? Tracking Low Incomes Using General Means," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1143-1172, November.
- James E. Foster & Miguel Székely, 2001. "Is Economic Growth Good for the Poor? Tracking Low Incomes Using General Means," Research Department Publications 4269, Inter-American Development Bank, Research Department.
- François Bourguignon & Mark Sundberg, 2007.
"Aid Effectiveness – Opening the Black Box,"
American Economic Review,
American Economic Association, vol. 97(2), pages 316-321, May.
- Arndt, Channing & Jones, Sam & Tarp, Finn, 2013. "Assessing Foreign Aid?s Long-Run Contribution to Growth in Development," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Dollar, David & Kraay, Aart, 2002.
"Growth Is Good for the Poor,"
Journal of Economic Growth,
Springer, vol. 7(3), pages 195-225, September.
- S.R. Osmani & B.B. Bajracharya, 2008. "Nepal," Chapters, in: Handbook on the South Asian Economies, chapter 5 Edward Elgar Publishing.
- Akashi, Kentaro & Kunitomo, Naoto, 2012.
"Some properties of the LIML estimator in a dynamic panel structural equation,"
Journal of Econometrics,
Elsevier, vol. 166(2), pages 167-183.
- Kentaro Akashi & Naoto Kunitomo, 2010. "Some Properties of the LIML Estimator in a Dynamic Panel Structural Equation," CIRJE F-Series CIRJE-F-707, CIRJE, Faculty of Economics, University of Tokyo.
- Kazuhiko Hayakawa, 2007. "A Simple Efficient Instrumental Variable Estimator in Panel AR(p) Models," Hi-Stat Discussion Paper Series d07-213, Institute of Economic Research, Hitotsubashi University.
- Mishra, Prachi & Newhouse, David, 2009. "Does health aid matter?," Journal of Health Economics, Elsevier, vol. 28(4), pages 855-872, July.
- Huang, Yongfu & Quibria, M. G., 2013. "The Global Partnership for Sustainable Development," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp2013-059. 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: (Bruck Tadesse)
If references are entirely missing, you can add them using this form.