Search results

1 – 10 of over 6000
Book part
Publication date: 1 April 2006

Nikos Tsakiris, Panos Hatzipanayotou and Michael S. Michael

We examine the allocation of a pre-determined amount of aid from a donor to two recipient countries. The donor suffers from cross-border pollution resulting from production…

Abstract

We examine the allocation of a pre-determined amount of aid from a donor to two recipient countries. The donor suffers from cross-border pollution resulting from production activities in the recipient countries. It is shown that the recipient with the higher fraction of aid allocated to public abatement and with the lower emission tax, receives a higher share of the aid when the donor allocates aid so as to maximize its own welfare. Competition for aid reduces cross-border pollution to the donor when recipients use the fraction of aid allocated to pollution abatement as a policy to divert aid from each other. But, it increases cross-border pollution when recipients use the emission tax to divert aid from each other.

Details

Theory and Practice of Foreign Aid
Type: Book
ISBN: 978-0-444-52765-3

Abstract

Details

Expatriate Leaders of International Development Projects
Type: Book
ISBN: 978-1-83909-631-0

Book part
Publication date: 17 June 2016

Shoko Yamada

This chapter highlights the characteristics of Asia through the analysis of policy-related documents by five donor countries, namely Japan, South Korea, China, India and Thailand…

Abstract

This chapter highlights the characteristics of Asia through the analysis of policy-related documents by five donor countries, namely Japan, South Korea, China, India and Thailand. It will also examine the roles played by regional bodies such as the Southeast Asian Ministers of Education Organization (SEAMEO) and ASPBAE (the Asia South Pacific Association for Basic and Adult Education) as the horizontal channels influencing aid policies in respective countries. Together with the analysis of the national and organizational policies, the regional process of building consensus on the post-2015 agenda is examined, with a particular focus on the Asia-Pacific Regional Education Conference (APREC) held in August 2014.

The analysis reveals that the region has two faces: one is imaginary and the other is functional. There is a common trend across Asian donors to refer to their historical ties with regions and countries to which they provide assistance and their traditional notions of education and development. They highlight Asian features in contrast to conventional aid principles and approaches based on the Western value system, either apparently or in a muted manner. In this sense, the imagined community of Asia with common cultural roots is perceived by the policymakers across the board.

At the same time, administratively, the importance of the region as a stage between the national and global levels is recognized increasingly in the multilateral global governance structure. With this broadened participatory structure, as discussed in the chapter ‘Post-EFA Global Discourse: The Process of Shaping the Shared View of the ‘Education Community’’, the expected function of the region to transmit the norms and requests from the global level and to collect and summarize national voices has increased.

Details

Post-Education-Forall and Sustainable Development Paradigm: Structural Changes with Diversifying Actors and Norms
Type: Book
ISBN: 978-1-78441-271-5

Keywords

Article
Publication date: 9 December 2020

Sena Kimm Gnangnon

This paper aims to examine the effect of development aid volatility on foreign direct investment (FDI) volatility in aid recipient countries.

Abstract

Purpose

This paper aims to examine the effect of development aid volatility on foreign direct investment (FDI) volatility in aid recipient countries.

Design/methodology/approach

The empirical analysis has relied on a sample of 117 countries over the period 1981–2016 and used the two-step system generalized methods of moments (GMM) approach.

Findings

The findings indicate that development aid volatility exerts a positive and significant effect on FDI volatility, with the magnitude of this positive effect rising as countries’ real per capita income increases. Furthermore, development aid volatility is non-linearly related to FDI volatility, as additional rises in the degree of development aid volatility further amplify FDI volatility.

Research limitations/implications

These outcomes highlight that volatility of development aid inflows enhances the volatility of FDI inflows. Thus, the enhancement of the aid coordination system between donor-countries and recipient-countries would not only help mitigate the volatility of aid – which reduces the macroeconomic effectiveness of aid – but also stabilizes FDI inflows to developing countries.

Practical implications

A limitation of the present paper is its reliance on aggregate FDI inflows to perform the analysis. Availability of data on greenfield FDI inflows and cross-border mergers and acquisitions FDI inflows over a long-time-period would provide an opportunity to conduct an in-depth analysis of the volatility of development aid on FDI inflows volatility. Furthermore, it could be interesting to investigate in the future (if data is available) the extent to which aid coordination systems between donor-countries and recipient-countries versus recipient-countries’ domestic factors contribute to explaining the dynamics of FDI inflows volatility in recipient-countries of these two types of capital flows.

Originality/value

To the best of the authors’ knowledge, this topic has not been addressed in the literature.

Details

Review of International Business and Strategy, vol. 31 no. 2
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 26 June 2018

Hongshik Lee and Minseok Park

The existing literature on aid for trade (AfT) tends to support the effectiveness of AfT in improving trade capacities and enhancing the export performance of recipient countries

Abstract

Purpose

The existing literature on aid for trade (AfT) tends to support the effectiveness of AfT in improving trade capacities and enhancing the export performance of recipient countries. While aid directed at trade-related infrastructure (e.g. ports and roads) is reported to drive the overall effect of AfT, the increasing importance of labor market flexibility and informal labor in export environment has been largely overlooked. The purpose of this paper is to test two hypotheses regarding the relationship between labor market flexibility, exports and AfT. First, flexible labor regulation promotes exports by reducing adjustment costs related to the export process. Second, for informal labor-intensive export sectors, AfT effectiveness may be compromised by the contraction of the informal sector due to labor deregulation as it deteriorates comparative advantage that supports recipients’ export competitiveness.

Design/methodology/approach

Since first introduced by Tinbergen (1962), the gravity model has been widely used to analyze bilateral trade, and its usefulness has been verified in several prominent empirical studies (e.g. Anderson and van Wincoop, 2003; Helpman et al., 2008). However, despite the empirically successful framework of the gravity model, the standard gravity equation may not be appropriate for estimating the effect of AfT in the paper. The main interest lies in whether aggregate AfT flows enhance the export “performance” of individual recipients, that is, whether they improve the recipients’ total exports rather than their bilateral exports. For this purpose, the authors took aggregated approach to the gravity model from Anderson and van Wincoop (2003).

Findings

The findings suggest that while both AfT and labor market flexibility are positively associated with higher export levels, the export-promoting effect of AfT is marginally reduced by the contraction of informal workforce. These findings, however, only hold for export sectors that heavily rely on informal labor force, that is, primary commodities and resource/labor-intensive goods. The authors also find that these effects are stronger in low-income countries, indicating that the AfT initiative has been effective where it is needed the most.

Originality/value

This paper is the first attempt to analyze the relationship between AfT and exports with consideration of labor market flexibility. Using the data for 85 recipient countries, the authors test the following hypotheses. First, labor market flexibility promotes exports by reducing adjustment costs related to the exporting process. Second, the contraction of the informal sector due to labor deregulation deteriorates developing countries’ comparative advantage in certain export sectors. Hence, while both AfT and labor market flexibility are expected to enhance the export volume of developing countries, the loss from weaker comparative advantage in a form of smaller informal labor force can exceed the gains from AfT in certain sectors.

Details

Journal of Korea Trade, vol. 22 no. 2
Type: Research Article
ISSN: 1229-828X

Keywords

Article
Publication date: 1 March 2021

Chandan Kumar Roy, Huang Xiaoling and Banna Banik

This study aims to examine how aid for trade policy and regulations (AfTPR) contribute to achieving Sustainable Development Goal (SDG) target 8.1 (sustain per capita economic…

Abstract

Purpose

This study aims to examine how aid for trade policy and regulations (AfTPR) contribute to achieving Sustainable Development Goal (SDG) target 8.1 (sustain per capita economic growth) and whether the effectiveness of AfTPR is conditional to the stable political environment.

Design/methodology/approach

This paper uses a widely accepted endogenous growth framework and applies panel data fixed effects and two-step difference and system generalized method of moments estimation strategies on panel data of 50 developing countries over 2005–2017.

Findings

The findings of the study confirm that aid to trade policy promotes sustainable economic growth in developing countries, but this category of development assistance is only effective and significant for low and lower middle-income (LLMI) economies. The positive and significant effect of AfTPR in upper middle-income countries is conditional to their level of political stability. Under a stable political situation, the positive effect of AfTPR on sustainable growth remains almost same for the LLMI countries, whereas for the upper middle-income countries this growth effect reached almost double.

Research limitations/implications

International trade is considered as a driver for inclusive and sustainable economic growth, whereas aid for trade is acknowledged for its prospective contribution toward achieving these goals. The findings have dominant policy implications for the international development organizations and donors, which recommend that it is more desirable to transmit aid toward developing and implementing trade policy and regulations as per capita economic growth improves in the aid recipient countries.

Originality/value

According to the authors’ knowledge, no prior study empirically analyzes the effect of AfTPRs on SDG target 8.1.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 14 no. 3
Type: Research Article
ISSN: 1754-4408

Keywords

Book part
Publication date: 1 April 2006

George Mavrotas

The paper discusses various important issues of development aid in the context of the emerging new landscape for Official Development Assistance (ODA) and in particular how aid

Abstract

The paper discusses various important issues of development aid in the context of the emerging new landscape for Official Development Assistance (ODA) and in particular how aid effectiveness issues are now perceived in a world of scaled-up aid. The paper also discusses the overall nexus between aid, growth and domestic policies in aid-recipient countries by reflecting on the relevant ongoing debate in this area. A substantial part of the paper is devoted to the discussion of the central issues involved in development aid, particularly in connection with recent calls in the international development community for scaling-up aid so that the Millennium Development Goals can be attained, as well as the challenging new policy agenda in this regard.

Details

Theory and Practice of Foreign Aid
Type: Book
ISBN: 978-0-444-52765-3

Book part
Publication date: 1 April 2006

Subhayu Bandyopadhyay and Howard J. Wall

This paper estimates the responsiveness of aid to recipient countries' economic and physical needs, civil/political rights, and government effectiveness. We look exclusively at…

Abstract

This paper estimates the responsiveness of aid to recipient countries' economic and physical needs, civil/political rights, and government effectiveness. We look exclusively at the post-Cold War era and use fixed effects to control for the political, strategic, and other considerations of donors. We find that aid and per capita income have been negatively related, while aid has been positively related to infant mortality, rights, and government effectiveness.

Details

Theory and Practice of Foreign Aid
Type: Book
ISBN: 978-0-444-52765-3

Book part
Publication date: 1 April 2006

Shantayanan Devarajan, Andrew Sunil Rajkumar and Vinaya Swaroop

The recent increase in aid to Africa, alongside increases in special-purpose aid, has revived interest in the question of the fungibility of aid – the notion that, if a donor…

Abstract

The recent increase in aid to Africa, alongside increases in special-purpose aid, has revived interest in the question of the fungibility of aid – the notion that, if a donor gives aid for a project that the recipient government would have undertaken anyway, then the aid is financing some expenditure other than the intended project. That aid in this sense may be “fungible”, while long recognized, has recently been receiving some empirical support. This paper focuses on sub-Saharan Africa, the region with the largest GDP share of aid. It presents results indicating that aid may be partially fungible, and suggests some reasons why.

Details

Theory and Practice of Foreign Aid
Type: Book
ISBN: 978-0-444-52765-3

Article
Publication date: 7 November 2016

Nabamita Dutta, Russell S. Sobel and Sanjukta Roy

Existing literature has expressed significant pessimism about the outcomes of foreign aid received by developing nations. Foreign aid can lead to negative outcomes by generating…

Abstract

Purpose

Existing literature has expressed significant pessimism about the outcomes of foreign aid received by developing nations. Foreign aid can lead to negative outcomes by generating greater rent-seeking opportunities and creating aid dependence. While aid’s negative impact has been explored in the context of growth, political institutions, and economic institutions, the literature has not investigated the effect of aid on business climate of recipient nations. The purpose of this paper is to explore foreign aid’s impact on government regulations on the business climate in Sub-Saharan African (SSA) and Middle East and North American countries.

Design/methodology/approach

The authors consider a panel of 64 countries over six years. Since foreign aid is most likely to be endogenous, as identified in most studies, the identification strategy follows two methodologies – system GMM estimator, that creates its own instruments via moment generating conditions and instrumental variable approach that relies on an external instrument.

Findings

The authors find that aid worsens the business climate by increasing government restrictions. Foreign aid provides the recipient governments and the political elite resources to strengthen their power and reinforce predatory policies that are harmful for the business climate. The results further show that in the presence of long-lasting and sustainable democratic regimes, the negative impact of foreign aid on business climate mitigates to a certain extent.

Originality/value

While aid’s negative impact has been explored in the context of growth, political institutions, and economic institutions, the literature has not investigated the effect of aid on business climate of recipient nations. The authors explore the impact of foreign aid on government regulations on the business climate in SSA and Middle East and North American countries.

Details

Journal of Entrepreneurship and Public Policy, vol. 5 no. 3
Type: Research Article
ISSN: 2045-2101

Keywords

1 – 10 of over 6000