Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction

By P. Agénor, Nihal Bayraktar, K. Aynaoui. 2005

153 citations recorded by the source corpus.

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.

Subfields: Development, Economics and Econometrics, Safety Research

View Paper: https://www.semanticscholar.org/paper/bc2da191674dcc892928b7a9044ec38b76054fa7

Citations in the corpus

• Aid and the Supply Side : Public Investment, Export Performance, and Dutch Disease in Low-Income Countries (2006, unknown): “The model by Agénor, Bayraktar, and Aynaoui (2005), by contrast, provides an explicit treatment of the links between public investment and human capital formation.”
• Public infrastructure and growth : new channels and policy implications (2006, unknown): “…the use of cross-country simultaneous equations regression models or structural macroeconomic models, such as the SPAHD models developed by Agénor, Bayraktar, and El Aynaoui (2006) and Agénor et al. (2005), or the more advanced IMMPA framework described in Agénor, Izquierdo, and Jensen (2006).”