NDLI: Rent seeking and aid effectiveness

Content Provider	Springer Nature Link
Author	Hodler, Roland
Copyright Year	2006
Abstract	We introduce foreign aid and a rent seeking contest for public funds into the Barro (JPE 1990) growth model. We find that aid effectiveness depends on fiscal policies, the level of aid inflows and the quality of institutions that restrict appropriation of public funds by rent seeking agents. These results can be shown to be consistent with the best established findings in the empirical literature on aid effectiveness. Rent seeking may thus indeed be a major determinant of aid effectiveness. We further discuss how aid effectiveness depends on the way foreign aid is disbursed and on the determinants of institutional quality.
Starting Page	525
Ending Page	541
Page Count	17
File Format	PDF
ISSN	09275940
Journal	International Tax and Public Finance
Volume Number	14
Issue Number	5
e-ISSN	15736970
Language	English
Publisher	Springer US
Publisher Date	2006-09-13
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Foreign aid Growth Rent seeking Finance /Banking Business Taxation Public Finance & Economics
Content Type	Text
Resource Type	Article
Subject	Finance Accounting Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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Rent seeking and aid effectiveness