Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches

Patrick Guillaumont () and Sylviane Guillaumont Jeanneney ()

No DP2007-05, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In this paper we examine whether absorptive capacity can constitute sufficient justification for rejecting the proposal of a large aid increase to support the 'big push'. We argue that the probability of a poverty trap exists for many countries, in particular the least developed countries (LDCs) and that an increase in aid is relevant for them. Moreover we show that the decrease in marginal aid returns is slower in vulnerable countries, which supports the rationale to include vulnerability as one of the aid allocation criteria.

Keywords: Economic assistance and foreign aid; Economic development; Institutional economics; Poverty (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (19)

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Related works:
Working Paper: Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches (2011)
Working Paper: Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches (2010)
Working Paper: Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches (2006)
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