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Proceedings of the German Development Economics Conference, 2006 (Berlin) >
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http://hdl.handle.net/10419/19849
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| Title: | | Local Financial Development and the Aid-Growth Relationship  |
| Authors: | | Sayek, Selin Nkusu, Mwanza |
| Issue Date: | | 2006 |
| Series/Report no.: | | Proceedings of the German Development Economics Conference, Berlin 2006 / Verein für Socialpolitik, Research Committee Development Economics 23 |
| Abstract: | | With official development assistance (ODA) set to rise as countries strive to meet the Millennium Development Goals (MDGs), aid effectiveness remains an important area of development policy. An increasing number of studies support the notion that ODA can contribute to growth in a nonlinear relationship. In this paper, we investigate a new hypothesis regarding this relationship: that deeper financial markets in aid-recipient countries facilitate the management of aid flows, thereby enhancing aid effectiveness. An empirical analysis, using a panel data set, finds robust support for the hypothesis. |
| Subjects: | | Foreign aid economic growth poverty and financial development |
| JEL: | | I30 O40 F35 O50 |
| Document Type: | | Conference Paper |
| Appears in Collections: | | Proceedings of the German Development Economics Conference, 2006 (Berlin)
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