A macroeconomic framework for quantifying growth and poverty reduction strategies in Niger

Emmanuel Pinto Moreira and Nihal Bayraktar

No 3506, Policy Research Working Paper Series from The World Bank

Abstract: The authors apply the dynamic macroeconomic framework developed by Agénor, Bayraktar, and El Aynaoui (2004) to Niger. As in the original model, linkages between foreign aid, public investment (disaggregated into education, infrastructure, and health), and growth are explicitly captured. Although the nominal exchange rate is fixed, the relative price of domestic goods is endogenous, thereby allowing for potential Dutch disease effects associated with increases in aid. The authors assess the impact of policy shocks on poverty by using partial growth elasticities. They perform various policy experiments, including an increase in the level of foreign aid, a reallocation of public investment toward infrastructure, and neutral and non-neutral cuts in tariffs. The simulations show the dynamic tradeoffs that these policies entail with respect to growth and poverty reduction in Niger.

Keywords: Payment Systems&Infrastructure; Economic Theory&Research; Public Sector Economics&Finance; Environmental Economics&Policies; Banks&Banking Reform; Environmental Economics&Policies; Economic Theory&Research; Public Sector Economics&Finance; Banks&Banking Reform; Municipal Financial Management (search for similar items in EconPapers)
Date: 2005-02-01
New Economics Papers: this item is included in nep-afr, nep-dev and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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