EconPapers    
Economics at your fingertips  
 

Caveat Emptor: Foreign Aid and Entrepreneurship

Tomi Ovaska () and Ryo Takashima ()
Additional contact information
Ryo Takashima: Department of Global Studies, Sophia University, 7-1 Kioicho, Chiyoda, Tokyo 102-8554, Japan

Economies, 2020, vol. 8, issue 1, 1-13

Abstract: In the last 60 years, the results of development aid have been mixed. Thus far, it has been mostly the aid recipient countries, which have been held responsible for aid’s shortcomings. That focus is misplaced, however, since the donor countries, through development aid, also export some of their own institutions and values to the recipient countries affecting the recipients’ rate of entrepreneurship and income. This study demonstrates how donor countries vary widely in both the type and quality of their institutions and values, leading to diverging economic outcomes. The results indicate that recipient countries should pay serious attention to who their development partner is. In particular, recipients would want to avoid aid from low institutional quality donors with perceived anti-market attitudes. Finally, it is argued that development aid might become more efficient if it moved away from the bilateral, towards the multilateral, mode.

Keywords: aid donors; aid recipients; attitudes; bilateral aid; development aid; economic freedom; entrepreneurship; foreign aid; institutional quality; multilateral aid; TEA; values (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2227-7099/8/1/4/pdf (application/pdf)
https://www.mdpi.com/2227-7099/8/1/4/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:8:y:2020:i:1:p:4-:d:305578

Access Statistics for this article

Economies is currently edited by Prof. Dr. Ralf Fendel

More articles in Economies from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().

 
Page updated 2021-03-28
Handle: RePEc:gam:jecomi:v:8:y:2020:i:1:p:4-:d:305578