Foreign Aid and Market-Liberalizing Reform

Market-oriented economic policies have been strongly linked to faster rates of economic growth. Foreign aid is often provided in part to encourage market-oriented reforms. We analyse the impact of aid on market-liberalizing policy reform, correcting for its potential endogeneity. Results indicate th...

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Bibliographic Details
Main Authors:	Heckelman, Jac C., Knack, Stephen
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Foreign Aid F350 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230
Online Access:	http://hdl.handle.net/10986/5826

id	okr-10986-5826
recordtype	oai_dc
spelling	okr-10986-58262021-04-23T14:02:23Z Foreign Aid and Market-Liberalizing Reform Heckelman, Jac C. Knack, Stephen Foreign Aid F350 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Market-oriented economic policies have been strongly linked to faster rates of economic growth. Foreign aid is often provided in part to encourage market-oriented reforms. We analyse the impact of aid on market-liberalizing policy reform, correcting for its potential endogeneity. Results indicate that higher aid slowed reform over the 1980-2000 period, as measured by a broad index of policies. Disaggregating policy into five areas, aid is associated with slower reform in some policy areas but not in others. Disaggregating by decade, the adverse impact of aid on policy reform is much more pronounced for the 1980s than for the 1990s. 2012-03-30T07:34:44Z 2012-03-30T07:34:44Z 2008 Journal Article Economica 00130427 http://hdl.handle.net/10986/5826 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Foreign Aid F350 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230
spellingShingle	Foreign Aid F350 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Heckelman, Jac C. Knack, Stephen Foreign Aid and Market-Liberalizing Reform
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Market-oriented economic policies have been strongly linked to faster rates of economic growth. Foreign aid is often provided in part to encourage market-oriented reforms. We analyse the impact of aid on market-liberalizing policy reform, correcting for its potential endogeneity. Results indicate that higher aid slowed reform over the 1980-2000 period, as measured by a broad index of policies. Disaggregating policy into five areas, aid is associated with slower reform in some policy areas but not in others. Disaggregating by decade, the adverse impact of aid on policy reform is much more pronounced for the 1980s than for the 1990s.
format	Journal Article
author	Heckelman, Jac C. Knack, Stephen
author_facet	Heckelman, Jac C. Knack, Stephen
author_sort	Heckelman, Jac C.
title	Foreign Aid and Market-Liberalizing Reform
title_short	Foreign Aid and Market-Liberalizing Reform
title_full	Foreign Aid and Market-Liberalizing Reform
title_fullStr	Foreign Aid and Market-Liberalizing Reform
title_full_unstemmed	Foreign Aid and Market-Liberalizing Reform
title_sort	foreign aid and market-liberalizing reform
publishDate	2012
url	http://hdl.handle.net/10986/5826
_version_	1764396452126130176

Foreign Aid and Market-Liberalizing Reform

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