Foreign Aid in South Asia examines the individual South Asian country experience in dealing with foreign aid. The articles in this book show that the effectiveness of foreign aid as a developmental tool over the last few decades has been mixed, and that the Paris Declaration of 2005 has brought about some improvement in aid ownership, harmonization, mainstreaming, utilization, etc. The book examines how emerging as well as less developed South Asian economies are adapting to these developments in the context of security issues, post-conflict rehabilitation/reconstruction, and so on.

The book provides many lessons for designing an international framework for aid or international aid architecture through case studies, highlighting the future policy priorities for that country. For the very first time, focus is laid on Bhutan, Maldives and Afghanistan—the three least-documented countries in the region—besides discussing about India, Pakistan, Bangladesh, Sri Lanka and Nepal.

Aid and Growth in India: Some Evidence from Disaggregated Aid Data1

Aid and Growth in India: Some Evidence from Disaggregated Aid Data1

Aid and growth in india: Some evidence from disaggregated aid data


In this chapter we focus on the impact of aid on growth through the use of a new approach in the aid-effectiveness literature related to the composition of foreign aid. We present a model of the impact of aid on growth in an aid-recipient economy to derive a reduced-form growth equation, which is subsequently estimated by using time-series data for India over the period 1970–92. This chapter improves upon earlier work in the area of aid effectiveness by focusing on a neglected, though important issue, namely aid disaggregation and the way it affects the empirics of aid effectiveness. Fully disaggregated aid data has been ...

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