Roads out of Poverty? Assessing the Links between Aid, Public Investment, Growth, and Poverty Reduction

The authors develop a macroeconomic framework that captures links between aid, public investment, growth, and poverty. Public investment is disaggregated into education, infrastructure, and health, and affects both aggregate supply and demand. Dutch disease effects are captured by accounting for cha...

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Main Authors:	Agénor, Pierre-Richard, Bayraktar, Nihal El, Aynaoui, Karim
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABSORPTIVE CAPACITY ACCELERATOR ACCELERATOR EFFECT ACCOUNTING ADVERSE EFFECTS AGGREGATE DEMAND AGGREGATE SUPPLY BALANCE OF PAYMENTS BARRIERS TO ENTRY BORROWING CAPITAL FORMATION CENTRAL BANK COMPETITIVENESS CONDITIONALITY CONSUMPTION LEVELS CURRENCY DEBT DEBT RELIEF DEFICIT FINANCING DEVELOPMENT ASSISTANCE DEVELOPMENT ECONOMICS DIMINISHING RETURNS DISPOSABLE INCOME ECONOMETRIC ESTIMATES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES ECONOMISTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE EXOGENOUS SHOCKS EXOGENOUS VARIABLES EXPENDITURE EXPORTS FINANCIAL MARKETS FORMAL ANALYSIS FUNGIBILITY GDP GDP PER CAPITA GINI COEFFICIENT GROSS DOMESTIC PRODUCT GROWTH RATE HUMAN CAPITAL HUMAN DEVELOPMENT IMPORTS INCOME INCOME DISTRIBUTION INTEREST PAYMENTS INTEREST RATE INTEREST RATES LABOR MARKET LABOR SUPPLY LINKAGES MACROECONOMIC EFFECTS MACROECONOMIC POLICIES MACROECONOMICS MARGINAL PRODUCTIVITY MARKET EQUILIBRIUM MARKET PRICES MORAL HAZARD MORAL HAZARD PROBLEMS PER CAPITA INCOME PHYSICAL CAPITAL POLICY DECISIONS POVERTY LINE POWER PLANTS PRIVATE CONSUMPTION PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INPUTS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INVESTMENT PUBLIC SERVICES PUBLIC SPENDING PUBLIC TRANSPORTATION PURCHASES REAL GDP REAL INCOME REAL WAGES SAFETY SAFETY NETS SAVINGS SIDE EFFECTS STOCKS TAX REVENUE TAX REVENUES TAXATION TELECOMMUNICATIONS TERMS OF TRADE TRADE POLICIES UNEMPLOYMENT VALUE OF OUTPUT WAGE FLEXIBILITY
Online Access:	http://documents.worldbank.org/curated/en/2005/01/5601860/roads-out-poverty-assessing-links-between-aid-public-investment-growth-poverty-reduction http://hdl.handle.net/10986/8892

id	okr-10986-8892
recordtype	oai_dc
spelling	okr-10986-88922021-04-23T14:02:42Z Roads out of Poverty? Assessing the Links between Aid, Public Investment, Growth, and Poverty Reduction Agénor, Pierre-Richard Bayraktar, Nihal El Aynaoui, Karim ABSORPTIVE CAPACITY ACCELERATOR ACCELERATOR EFFECT ACCOUNTING ADVERSE EFFECTS AGGREGATE DEMAND AGGREGATE SUPPLY BALANCE OF PAYMENTS BARRIERS TO ENTRY BORROWING CAPITAL FORMATION CENTRAL BANK COMPETITIVENESS CONDITIONALITY CONSUMPTION LEVELS CURRENCY DEBT DEBT RELIEF DEFICIT FINANCING DEVELOPMENT ASSISTANCE DEVELOPMENT ECONOMICS DIMINISHING RETURNS DISPOSABLE INCOME ECONOMETRIC ESTIMATES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES ECONOMISTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE EXOGENOUS SHOCKS EXOGENOUS VARIABLES EXPENDITURE EXPORTS FINANCIAL MARKETS FORMAL ANALYSIS FUNGIBILITY GDP GDP PER CAPITA GINI COEFFICIENT GROSS DOMESTIC PRODUCT GROWTH RATE HUMAN CAPITAL HUMAN DEVELOPMENT IMPORTS INCOME INCOME DISTRIBUTION INTEREST PAYMENTS INTEREST RATE INTEREST RATES LABOR MARKET LABOR SUPPLY LINKAGES MACROECONOMIC EFFECTS MACROECONOMIC POLICIES MACROECONOMICS MARGINAL PRODUCTIVITY MARKET EQUILIBRIUM MARKET PRICES MORAL HAZARD MORAL HAZARD PROBLEMS PER CAPITA INCOME PHYSICAL CAPITAL POLICY DECISIONS POVERTY LINE POWER PLANTS PRIVATE CONSUMPTION PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INPUTS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INVESTMENT PUBLIC SERVICES PUBLIC SPENDING PUBLIC TRANSPORTATION PURCHASES REAL GDP REAL INCOME REAL WAGES SAFETY SAFETY NETS SAVINGS SIDE EFFECTS STOCKS TAX REVENUE TAX REVENUES TAXATION TELECOMMUNICATIONS TERMS OF TRADE TRADE POLICIES UNEMPLOYMENT VALUE OF OUTPUT WAGE FLEXIBILITY The authors develop a macroeconomic framework that captures links between aid, public investment, growth, and poverty. Public investment is disaggregated into education, infrastructure, and health, and affects both aggregate supply and demand. Dutch disease effects are captured by accounting for changes in the relative price of domestic goods. The authors assess the impact of policy shocks on poverty by linking the model to a household survey. They calibrate the model for Ethiopia and simulate the changes in the allocation of aid and public investment. The authors also calculate the amount by which foreign aid should increase to reach the poverty targets of the Millennium Development Goals. 2012-06-22T21:48:24Z 2012-06-22T21:48:24Z 2005-01 http://documents.worldbank.org/curated/en/2005/01/5601860/roads-out-poverty-assessing-links-between-aid-public-investment-growth-poverty-reduction http://hdl.handle.net/10986/8892 English Policy Research Working Paper; No. 3490 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ABSORPTIVE CAPACITY ACCELERATOR ACCELERATOR EFFECT ACCOUNTING ADVERSE EFFECTS AGGREGATE DEMAND AGGREGATE SUPPLY BALANCE OF PAYMENTS BARRIERS TO ENTRY BORROWING CAPITAL FORMATION CENTRAL BANK COMPETITIVENESS CONDITIONALITY CONSUMPTION LEVELS CURRENCY DEBT DEBT RELIEF DEFICIT FINANCING DEVELOPMENT ASSISTANCE DEVELOPMENT ECONOMICS DIMINISHING RETURNS DISPOSABLE INCOME ECONOMETRIC ESTIMATES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES ECONOMISTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE EXOGENOUS SHOCKS EXOGENOUS VARIABLES EXPENDITURE EXPORTS FINANCIAL MARKETS FORMAL ANALYSIS FUNGIBILITY GDP GDP PER CAPITA GINI COEFFICIENT GROSS DOMESTIC PRODUCT GROWTH RATE HUMAN CAPITAL HUMAN DEVELOPMENT IMPORTS INCOME INCOME DISTRIBUTION INTEREST PAYMENTS INTEREST RATE INTEREST RATES LABOR MARKET LABOR SUPPLY LINKAGES MACROECONOMIC EFFECTS MACROECONOMIC POLICIES MACROECONOMICS MARGINAL PRODUCTIVITY MARKET EQUILIBRIUM MARKET PRICES MORAL HAZARD MORAL HAZARD PROBLEMS PER CAPITA INCOME PHYSICAL CAPITAL POLICY DECISIONS POVERTY LINE POWER PLANTS PRIVATE CONSUMPTION PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INPUTS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INVESTMENT PUBLIC SERVICES PUBLIC SPENDING PUBLIC TRANSPORTATION PURCHASES REAL GDP REAL INCOME REAL WAGES SAFETY SAFETY NETS SAVINGS SIDE EFFECTS STOCKS TAX REVENUE TAX REVENUES TAXATION TELECOMMUNICATIONS TERMS OF TRADE TRADE POLICIES UNEMPLOYMENT VALUE OF OUTPUT WAGE FLEXIBILITY
spellingShingle	ABSORPTIVE CAPACITY ACCELERATOR ACCELERATOR EFFECT ACCOUNTING ADVERSE EFFECTS AGGREGATE DEMAND AGGREGATE SUPPLY BALANCE OF PAYMENTS BARRIERS TO ENTRY BORROWING CAPITAL FORMATION CENTRAL BANK COMPETITIVENESS CONDITIONALITY CONSUMPTION LEVELS CURRENCY DEBT DEBT RELIEF DEFICIT FINANCING DEVELOPMENT ASSISTANCE DEVELOPMENT ECONOMICS DIMINISHING RETURNS DISPOSABLE INCOME ECONOMETRIC ESTIMATES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES ECONOMISTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE EXOGENOUS SHOCKS EXOGENOUS VARIABLES EXPENDITURE EXPORTS FINANCIAL MARKETS FORMAL ANALYSIS FUNGIBILITY GDP GDP PER CAPITA GINI COEFFICIENT GROSS DOMESTIC PRODUCT GROWTH RATE HUMAN CAPITAL HUMAN DEVELOPMENT IMPORTS INCOME INCOME DISTRIBUTION INTEREST PAYMENTS INTEREST RATE INTEREST RATES LABOR MARKET LABOR SUPPLY LINKAGES MACROECONOMIC EFFECTS MACROECONOMIC POLICIES MACROECONOMICS MARGINAL PRODUCTIVITY MARKET EQUILIBRIUM MARKET PRICES MORAL HAZARD MORAL HAZARD PROBLEMS PER CAPITA INCOME PHYSICAL CAPITAL POLICY DECISIONS POVERTY LINE POWER PLANTS PRIVATE CONSUMPTION PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INPUTS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INVESTMENT PUBLIC SERVICES PUBLIC SPENDING PUBLIC TRANSPORTATION PURCHASES REAL GDP REAL INCOME REAL WAGES SAFETY SAFETY NETS SAVINGS SIDE EFFECTS STOCKS TAX REVENUE TAX REVENUES TAXATION TELECOMMUNICATIONS TERMS OF TRADE TRADE POLICIES UNEMPLOYMENT VALUE OF OUTPUT WAGE FLEXIBILITY Agénor, Pierre-Richard Bayraktar, Nihal El Aynaoui, Karim Roads out of Poverty? Assessing the Links between Aid, Public Investment, Growth, and Poverty Reduction
relation	Policy Research Working Paper; No. 3490
description	The authors develop a macroeconomic framework that captures links between aid, public investment, growth, and poverty. Public investment is disaggregated into education, infrastructure, and health, and affects both aggregate supply and demand. Dutch disease effects are captured by accounting for changes in the relative price of domestic goods. The authors assess the impact of policy shocks on poverty by linking the model to a household survey. They calibrate the model for Ethiopia and simulate the changes in the allocation of aid and public investment. The authors also calculate the amount by which foreign aid should increase to reach the poverty targets of the Millennium Development Goals.
format	Publications & Research :: Policy Research Working Paper
author	Agénor, Pierre-Richard Bayraktar, Nihal El Aynaoui, Karim
author_facet	Agénor, Pierre-Richard Bayraktar, Nihal El Aynaoui, Karim
author_sort	Agénor, Pierre-Richard
title	Roads out of Poverty? Assessing the Links between Aid, Public Investment, Growth, and Poverty Reduction
title_short	Roads out of Poverty? Assessing the Links between Aid, Public Investment, Growth, and Poverty Reduction
title_full	Roads out of Poverty? Assessing the Links between Aid, Public Investment, Growth, and Poverty Reduction
title_fullStr	Roads out of Poverty? Assessing the Links between Aid, Public Investment, Growth, and Poverty Reduction
title_full_unstemmed	Roads out of Poverty? Assessing the Links between Aid, Public Investment, Growth, and Poverty Reduction
title_sort	roads out of poverty? assessing the links between aid, public investment, growth, and poverty reduction
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/01/5601860/roads-out-poverty-assessing-links-between-aid-public-investment-growth-poverty-reduction http://hdl.handle.net/10986/8892
_version_	1764406930153930752

Roads out of Poverty? Assessing the Links between Aid, Public Investment, Growth, and Poverty Reduction

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