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EFEKTY ZAHRANIČNEJ POMOCI NA ZNÍŽENIE REGIONÁLNYCH DISPARÍT: PRÍPADY TRANZITÍVNYCH, ROZVÍJAJÚCICH SA A ROZVOJOVÝCH EKONOMÍK

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Workie Tiruhen M.
Ekonomický časopis (Journal of Economics)
|
2009
|
vol. 57
|
issue 10
980 – 999
EN
This paper looks at the effects of foreign aid on alleviating regional (cross-country) income disparity. While foreign aid is designed to help countries finance the gaps between savings and investment, the results seem so far to indicate that foreign aid has not played any major role to generate accelerated economic growth and a subsequent relief in regional disparity. Nonetheless, there are cross-country and cross-regional differences when it comes to effective use of foreign aid. In this respect, while the data for emerging economies reveal some positive effects for regional growth, for most of the developing regions, foreign aid contributed to change a little not only trends in regional disparity but also the overall economic landscape of the countries under investigation.
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