EVALUATING THE IMPACT OF FOREIGN AID ON ECONOMIC GROWTH: A CROSS-COUNTRY STUDY

One branch of the literature on aid effectiveness attempts to measure the contribution of foreign aid to the growth of developing countries. The micro results are clear and encouraging: foreign aid is beneficial to economic growth. However, until recently, the macro results were inconclusive: the impact of aid on growth was positive, negative, or even non-existent, in statistical terms. This contradiction is known as the ¡°micro-macro paradox¡±. Certain methodological and econometric flaws inherent in the assessments being carried out up to the mid-nineties may provide an explanation for the misleading macro results. Examining a large panel data set, I have found that foreign aid has had a positive impact on economic growth. In light of these findings, I conclude that earlier-generation work is in accordance with the new and recent generation of aid effectiveness studies. Thus, less importance should be attributed to the ¡°micro-macro paradox¡± as an overall appraisal of aid effectiveness. In terms of magnitude, I have also found that aid has less effect on growth in the short-run than in the long-run. I also conclude that the time lags in the aid-growth relationship should not be ignored.Foreign Aid, Economic Growth, Panel Data, Generalised Method of Moments

Experiments on Stratification

The principle of superposition requires that superposed strata in sedimentary rocks form from successive layers of sediments. The principle of continuity asserts that each layer has the same age at any point. These principles apply a relative chronology to superposed strata. The correlation between strata and time allowed Charles Lyell to establish the first geologic column in 1830. From his examination of sediments in the Gulf of Naples in Italy a century ago, Johannes Walther, one of the founders of sedimentology, formulated his law of correlation of facies: As with biotopes it is a basic statement of far-reaching significance that only those facies areas can be superposed primarily which can be observed beside each other at the present time [3). Walther\u27s law, which gave rise to the modern sequential analysis of facies, is not in agreement with the principles of superposition and continuity. His law, as well as the observations of the Bijou-Creek deposits, suggested that the contradiction might be due to the belief that superposed strata are the same as successive layers. The author\u27s first experiments on lamination and those performed at the Colorado State University in large flumes showed that stratification under a continuous supply of heterogeneous sand particles can result from: segregation for lamination, non-uniform flow for graded beds, and desiccation for bedding plane partings. In the flume experiments superposed strata were always distinct from successive layers, and neither the principle of superposition nor the principle of continuity applied to the strata. Due to the mechanical nature of segregation and the presence of sediments and non-uniform flow in oceans and rivers being the same factors producing strata formation in the flume, the experimental results might have some application to the genesis of stratified rocks. As the experiments cast doubt upon the use of the principles of superposition and continuity for interpreting the origin of sedimentary rocks, it would perhaps be preferable to follow the modern approach of sequential analysis, although on a larger scale. Such an approach should necessarily take into account the present series of experiments

An integrated approach for the measurement of inequality, poverty, and richness

We propose a new and integrated approach to the measurement of inequality in income distribution, poverty, and richness. The proposed broad set of indicators is neutral and easy to calculate. The method allows a specific interpretation of the results, a decomposition according to households’ characteristics, and an immediate comparison of the results between different countries and time periods. We illustrate the application of the proposed measures and their decomposition based on evidence from Portugal. In addition, we characterize households in accordance with their position in the income distribution.income inequality, poverty, richness, measurement.

On the measurement of the environmental component of development: main approaches and indicators

Os indicadores ambientais são especialmente apelativos no estudo entre o desenvolvimento e essa dimensão constitutiva do fenómeno. Neste artigo, apresentamos duas categorias distintas de indicadores ambientais, demarcando-os de um leque de indicadores mais abrangentes – os indicadores de sustentabilidade. Por outro lado, discutimos com mais detalhe as três iniciativas que elegemos para um monitoramento regular do estado do ambiente (incluindo a sua sustentabilidade): (i) Necessidades Totais de Materiais; (ii) Capital Natural; (iii) Pegada Ecológica.Environment indicators are especially appealing when studying development and that constituent dimension of the phenomenon. This paper presents two distinguishing categories of environment indicators, delimiting them from a much wider set of indicators – the sustainability indicators. On the other hand, we discuss in detail three initiatives selected for a constant monitoring of the state of the environment (including its sustainability): (i) Total Material Requirements; (ii) Natural Capital; (iii) Ecological Footprint

O paradoxo micro-macro da eficácia da ajuda: morto ou vivo?

Comunicação apresentada no VIII Congresso Luso-Afro-Brasileiro de Ciências Sociais: A Questão Social no Novo MilénioA presente comunicação tem um duplo objectivo. Em primeiro lugar, visa dotar o investigador de um quadro-síntese sobre os estudos econométricos que deram relevo à questão da eficácia da ajuda (em termos de crescimento económico), utilizando uma abordagem cross-country. Esta ferramenta de apoio abrange desde os primeiros estudos realizados na década de setenta até aos últimos desenvolvimentos na área e apresenta uma breve descrição de cada estudo em análise (incluindo principais resultados e conclusões). Como segundo objectivo deste trabalho, propõe-se fazer uma análise global dos estudos acima referidos e respectivos resultados. Tendo em consideração o quadro teórico de base e os procedimentos metodológicos e econométricos mais comuns, identificam-se duas gerações de estudos cross-country da relação ajuda-crescimento. Os resultados da primeira geração de estudos contrastam com os obtidos pelos estudos mais recentes, ao não validarem, de forma consistente, o efeito positivo e estatisticamente significativo da ajuda no crescimento dos PVD, dando, desta forma, fundamento ao paradoxo micro-macro. Uma reavaliação dos resultados sugere que a afirmação é excessiva, pelo que em conjugação com os resultados satisfatórios da segunda geração de estudos, se pode concluir que o paradoxo micro-macro deixa de fazer sentido enquanto resultado da avaliação empírica da eficácia da ajuda

Indicadores de dotação e qualidade das infraestruturas com uma aplicação empírica a Portugal

Comunicação apresentada no 18th APDR Congress: Innovation and Regional DynamicsA multidimensionalidade do conceito de infraestruturas requer indicadores que consigam captar as suas componentes mais relevantes. Nesse âmbito, as duas óticas de medição mais difundidas analisam as diferentes vertentes de infraestruturas de forma isolada ou através da utilização de um índice de infraestruturas. Este artigo procura contribuir para uma medição mais apropriada das infraestruturas e, nessa medida, compreende: (i) uma nomenclatura de infraestruturas que inclui as dimensões fundamentais do fenómeno; (ii) um leque alargado de indicadores de dotação e qualidade para cada uma das dimensões individualmente consideradas, os quais, sendo periodicamente analisados de forma conjunta, possibilitam uma avaliação mais completa das infraestruturas; (iii) um leque mais restrito daqueles que integrados numa medida compósita de infraestruturas permitem uma monitorização mais imediata e permanente da evolução do fenómeno entre espaços económicos. Os indicadores sugeridos são aplicados a um caso concreto, Portugal

Evaluating the impact of foreign aid on economic growth: a cross-country study

One branch of the literature on aid effectiveness attempts to measure the contribution of foreign aid to the growth of developing countries. The micro results are clear and encouraging: foreign aid is beneficial to economic growth. However, until recently, the macro results were inconclusive: the impact of aid on growth was positive, negative, or even non-existent, in statistical terms. This contradiction is known as the “micro-macro paradox”. Certain methodological and econometric flaws inherent in the assessments being carried out up to the mid-nineties may provide an explanation for the misleading macro results. Examining a large panel data set, I have found that foreign aid has had a positive impact on economic growth. In light of these findings, I conclude that earlier-generation work is in accordance with the new and recent generation of aid effectiveness studies. Thus, less importance should be attributed to the “micro-macro paradox” as an overall appraisal of aid effectiveness. In terms of magnitude, I have also found that aid has less effect on growth in the short-run than in the long-run. I also conclude that the time lags in the aid-growth relationship should not be ignored

Evaluating the impact of foreign aid on economic growth: a cross-country study (1970-1998)

Comunicação apresentada na 7th Conference CEMAPRE, ISEGMany studies have tried to assess the effectiveness of foreign aid at the micro and macro level. One branch of the literature attempts to measure the contribution of foreign aid to the growth of developing countries. The micro results are clear and encouraging: foreign aid is beneficial to economic growth. However, the macro results are inconclusive: the impact of foreign aid on growth may be positive, negative, or even non-existent, in statistical terms. This contradiction is known as the ‘micro-macro paradox’. As the findings in this paper will demonstrate, certain methodological and econometric flaws inherent in the assessments being carried out may provide an explanation for the misleading macro results. I have proposed a solution for the shortcomings I have found, using a different set of common econometric tools and the generalised method of moments (GMM) estimator on simple augmentations of cross-country growth specifications. Examining a large sample of developing countries covering a 29-year period, I have found that foreign aid has had a positive impact on economic growth. In light of these findings, I conclude that less importance should be attributed to the ‘micro-macro paradox’ as an overall appraisal of the effectiveness of foreign aid. In terms of magnitude, I have also found that foreign aid has less effect on growth in the short term than in the long term. I also conclude that the time lags in the aid-growth relationship should not be ignored

The empirical determinants of FDI to Africa: a survey of some recent research

Comunicação apresentada no VI Congreso de Estudios Africanos en el Mundo Ibérico: África, Puentes, Conexiones e Intercambio