IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

EU aid for ACP investment

  • Wolf, Susanna
Registered author(s):

    The partnership between the EU and the ACP countries (that include 38 of the world?s 49 least developed countries) has a long standing history and was renewed in 2000 with the Cotonou Agreement. Furthermore, the European Commission has become the world?s fifth largest donor of development aid - and therefore one of the most important - in the 1990?s. When total aid is looked at the ACP countries are disproportionally among those receiving the most foreign aid per capita in the world and hence the effects of European aid are of special relevance for them. The aim of this paper is therefore to investigate the effect European aid has on investment in the ACP countries. It contributes to the ongoing debate on aid effectiveness by arguing that the impact f aid does not only depend on the characteristics of the recipient but also of the donor. The EU-ACP Partnership Agreement could increase incentives for private investment in the ACP countries either through direct support measures or more indirectly through complementary spending for infrastructure and administration. The special private sector chapter in the Cotonou Agreement makes it visible that private sector support is a primary objective and brings the existing provisions into a more coherent and refined framework. However, given the limited funds that were available under the Lomé Conventions direct investment support cannot be expected to increase total investment considerably. The empirical findings show that total aid has a positive but declining effect on the share of gross domestic investment in GDP. The effect of aid from the European Commission on gross domestic investment seems to be smaller partly due to its allocation towards ACP countries with a relatively poor investment performance.

    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://econstor.eu/bitstream/10419/19353/1/192.pdf
    Download Restriction: no

    Paper provided by Hamburg Institute of International Economics (HWWA) in its series HWWA Discussion Papers with number 192.

    as
    in new window

    Length:
    Date of creation: 2002
    Date of revision:
    Handle: RePEc:zbw:hwwadp:26129
    Contact details of provider: Postal: Neuer Jungfernstieg 21, D-20347 Hamburg
    Phone: 0049-40-42834-0
    Fax: 0049-40-42834-451
    Web page: http://www.econstor.eu/handle/10419/20
    Email:


    More information through EDIRC

    References listed on IDEAS
    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.:

    as in new window
    1. Hansen, Henrik & Tarp, Finn, 2000. "Aid and Growth Regressions," MPRA Paper 62288, University Library of Munich, Germany.
    2. Robert Lensink & Oliver Morrissey, 2000. "Aid instability as a measure of uncertainty and the positive impact of aid on growth," Journal of Development Studies, Taylor & Francis Journals, vol. 36(3), pages 31-49.
    3. Dalgaard, Carl-Johan & Hansen, Henrik & Tarp, Finn, 2002. "On the Empirics of Foreign Aid and Growth," MPRA Paper 63696, University Library of Munich, Germany.
    4. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    5. Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
    Full references (including those not matched with items on IDEAS)

    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:zbw:hwwadp:26129. 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: (ZBW - German National Library of Economics)

    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.