The Ghost of Financing Gap: How the Harrod-Domar Growth Model Still Haunts Development Economics

The Ghost of Financing Gap: How the Harrod-Domar Growth Model Still Haunts Development Economics
Author: William Easterly
Publisher:
Total Pages:
Release: 1999
Genre:
ISBN:

August 1997 The ghost of a long-dead growth model still haunts aid to developing countries. The Harrod-Domar growth model supposedly died long ago. But for more than 40 years, economists working on developing countries have applied- still apply- Harrod-Domar model to calculate short-run investment requirements for a target growth rate. They then calculate a financing gap between the required investment and available resources and often fill the financing gap with foreign aid. Easterly traces the intellectual history of how a long-dead model came to influence today's aid allocation to developing countries. He asks whether the model's surprising afterlife is attributable to consistency with the 40 years of data that have accumulated during its use. The answer is no. This paper-a product of the Development Research Group-is part of a larger effort in the group to study the determinants of economic growth.

The Ghost of Financing Gap

The Ghost of Financing Gap
Author: William Easterly
Publisher:
Total Pages: 0
Release: 2005
Genre:
ISBN:

The ghost of a long-dead growth model still haunts aid to developing countries. The Harrod-Domar growth model supposedly died long ago. But for more than 40 years, economists working on developing countries have applied- still apply- Harrod-Domar model to calculate short-run investment requirements for a target growth rate. They then calculate a financing gap between the required investment and available resources and often fill the "financing gap" with foreign aid. Easterly traces the intellectual history of how a long-dead model came to influence today's aid allocation to developing countries. He asks whether the model's surprising afterlife is attributable to consistency with the 40 years of data that have accumulated during its use. The answer is "no." This paper-a product of the Development Research Group-is part of a larger effort in the group to study the determinants of economic growth.

W. Arthur Lewis and the Birth of Development Economics

W. Arthur Lewis and the Birth of Development Economics
Author: Robert L. Tignor
Publisher: Princeton University Press
Total Pages: 329
Release: 2020-06-23
Genre: Biography & Autobiography
ISBN: 0691202613

W. Arthur Lewis was one of the foremost intellectuals, economists, and political activists of the twentieth century. In this book, the first intellectual biography of Lewis, Robert Tignor traces Lewis's life from its beginnings on the small island of St. Lucia to Lewis's arrival at Princeton University in the early 1960s. A chronicle of Lewis's unfailing efforts to promote racial justice and decolonization, it provides a history of development economics as seen through the life of one of its most important founders. If there were a record for the number of "firsts" achieved by one man during his lifetime, Lewis would be a contender. He was the first black professor in a British university and also at Princeton University and the first person of African descent to win a Nobel Prize in a field other than literature or peace. His writings, which included his book The Theory of Economic Growth, were among the first to describe the field of development economics. Quickly gaining the attention of the leadership of colonized territories, he helped develop blueprints for the changing relationship between the former colonies and their former rulers. He made significant contributions to Ghana's quest for economic growth and the West Indies' desire to create a first-class institution of higher learning serving all of the Anglophone territories in the Caribbean. This book, based on Lewis's personal papers, provides a new view of this renowned economist and his impact on economic growth in the twentieth century. It will intrigue not only students of development economics but also anyone interested in colonialism and decolonization, and justice for the poor in third-world countries.

International Economic Policy Review, Volume 1

International Economic Policy Review, Volume 1
Author: Mr.Paul R Masson
Publisher: International Monetary Fund
Total Pages: 174
Release: 1999-09-28
Genre: Business & Economics
ISBN: 9781557758644

This series aims to make available to the general public and to economic policy practitioners, a selection of policy papers prepared by the staff of the International Monetary Fund. Papers in the International Economic Policy Review will offer specific policy-relevant analysis, but at a relatively non-technical level. These papers are intended to provide analytical background for IMF-supported programs and more generally to shed light on a range of policy choices facing ministries and central banks.

Innovation, Growth and Competitiveness

Innovation, Growth and Competitiveness
Author: Peter Nijkamp
Publisher: Springer Science & Business Media
Total Pages: 378
Release: 2010-12-01
Genre: Business & Economics
ISBN: 3642149650

This book investigates dynamic regions in the context of greater global interaction in a world economy increasingly driven by knowledge and innovation. It offers novel empirical evidence on the underlying factors of the growth performance of these spaces. In particular, the following questions are addressed: What role is there for research, education and innovation in the development strategies of the dynamic growth regions? What are the risks and consequences of dynamic growth on patterns of world growth and development, competitiveness, inequalities, and convergence? What development strategies should be promoted at national and international levels to promote a growing and more sustainable world economy? What are the implications of the emerging new competitors for Europe’s competitiveness? Using an innovative, integrated framework of analysis, the contributions in this book combine a wide array of complex theoretical and methodological approaches.

Development Without Aid

Development Without Aid
Author: David A. Phillips
Publisher: Anthem Press
Total Pages: 234
Release: 2013-04-15
Genre: Business & Economics
ISBN: 0857283014

“Development Without Aid” opens up perspectives about foreign aid to the world’s poorest countries. Growing up in Malawi the author developed a sense of the limitations of foreign assistance and from this evolves a critique of foreign aid as an alien resource unable to provide the dynamism that could propel the poorest countries out of poverty. The book aims to help move the discussion beyond foreign aid. It examines the rapid growth of the world’s diasporas as a quasi-indigenous resource of increasing strength in terms of both financial and human capital, and considers how far such a resource might supersede aid. It uses extensive research findings to explore the possibilities for a resumption of sovereignty by poor states, especially in Africa, over their own development with the assistance of the world’s diasporas.

Foreign Aid and Development

Foreign Aid and Development
Author: Finn Tarp
Publisher: Psychology Press
Total Pages: 522
Release: 2000
Genre: Business & Economics
ISBN: 9780415215466

Aid has worked in the past but can be made to work better in the future. This book offers important new research and will appeal to those working in economics, politics and development studies as well as to governmental and aid professionals.

Transforming Sudan

Transforming Sudan
Author: Alden Young
Publisher: Cambridge University Press
Total Pages: 197
Release: 2018
Genre: Business & Economics
ISBN: 1107172497

This book traces the formation of the Sudanese state following the Second World War through a developmentalist ideology.