Complementarities between Grants and Loans

A debate has emerged over the optimal delivery of official development assistance (ODA) to developing countries: through grants or through concessional loans. While some countries such as Japan provide aid through loans, other countries tend to rely on grants. An endogenous growth model is considere...

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Main Authors:	Iimi, Atsushi, Ojima, Yasuhisa
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Foreign Aid F350 National Government Expenditures and Related Policies: General H500 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470
Online Access:	http://hdl.handle.net/10986/5866

id	okr-10986-5866
recordtype	oai_dc
spelling	okr-10986-58662021-04-23T14:02:23Z Complementarities between Grants and Loans Iimi, Atsushi Ojima, Yasuhisa Foreign Aid F350 National Government Expenditures and Related Policies: General H500 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 A debate has emerged over the optimal delivery of official development assistance (ODA) to developing countries: through grants or through concessional loans. While some countries such as Japan provide aid through loans, other countries tend to rely on grants. An endogenous growth model is considered, in which public spending is financed through aid and the donor community can influence a recipient country's growth path by choosing a combination of grants and loans. Empirically, it is found that an increase in the concessionality attached to ODA loans can facilitate recipient countries' economic development. It is also found that grants and loans are complementary with an optimal grant-loan ratio of 1 to 0.2-0.4, depending on the specifications. 2012-03-30T07:34:56Z 2012-03-30T07:34:56Z 2008 Journal Article Journal of the Japanese and International Economies 08891583 http://hdl.handle.net/10986/5866 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Japan
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 National Government Expenditures and Related Policies: General H500 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470
spellingShingle	Foreign Aid F350 National Government Expenditures and Related Policies: General H500 International Linkages to Development Role of International Organizations O190 Fiscal and Monetary Policy in Development O230 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Iimi, Atsushi Ojima, Yasuhisa Complementarities between Grants and Loans
geographic_facet	Japan
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	A debate has emerged over the optimal delivery of official development assistance (ODA) to developing countries: through grants or through concessional loans. While some countries such as Japan provide aid through loans, other countries tend to rely on grants. An endogenous growth model is considered, in which public spending is financed through aid and the donor community can influence a recipient country's growth path by choosing a combination of grants and loans. Empirically, it is found that an increase in the concessionality attached to ODA loans can facilitate recipient countries' economic development. It is also found that grants and loans are complementary with an optimal grant-loan ratio of 1 to 0.2-0.4, depending on the specifications.
format	Journal Article
author	Iimi, Atsushi Ojima, Yasuhisa
author_facet	Iimi, Atsushi Ojima, Yasuhisa
author_sort	Iimi, Atsushi
title	Complementarities between Grants and Loans
title_short	Complementarities between Grants and Loans
title_full	Complementarities between Grants and Loans
title_fullStr	Complementarities between Grants and Loans
title_full_unstemmed	Complementarities between Grants and Loans
title_sort	complementarities between grants and loans
publishDate	2012
url	http://hdl.handle.net/10986/5866
_version_	1764396594090737664

Complementarities between Grants and Loans

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