Abstract
Abstract The aim of this paper is to assess the effect of official development assistance on economic growth and poverty reduction in Tajikistan, as well as to examine the recent role of South-South Cooperation. We used a panel data set on economic growth and poverty estimates in Tajikistan, and found that a 1% increase of official development assistance provoked a 1.6% rise in per capita GDP and a 0.48% decrease in poverty levels in Tajikistan. Despite the increased relevance of South-South Cooperation in Tajikistan, the current bilateral cooperation pattern does not allow us to think South–South aid will create employment and growth opportunities.
Highlights
It is nearly fifty years since foreign official development assistance became one of the main factors of economic growth among developing countries
It is too soon to examine whether South-South Cooperation will be more effective for economic growth and poverty reduction; it is still essential to evaluate the recent role played by official development assistance (ODA) from Organization for Economic Cooperation and Development (OECD)/Development Assistance Committee (DAC) countries
We attempt to assess the effect of ODA on economic growth and poverty reduction in Tajikistan with the purpose of testing the following hypotheses: H1: The volume of foreign aid is associated with a higher standard of living
Summary
It is nearly fifty years since foreign official development assistance became one of the main factors of economic growth among developing countries. In this paper we analyse the main features of the ODA flows recently received in Tajikistan, in order to draw conclusions about the nature of Tajik aid, and to suggest policy recommendations for EU as well as OECD countries regarding ODA effectiveness. It is too soon to examine whether South-South Cooperation will be more effective for economic growth and poverty reduction; it is still essential to evaluate the recent role played by ODA from OECD/DAC countries. We attempt to assess the effect of ODA on economic growth and poverty reduction in Tajikistan with the purpose of testing the following hypotheses: H1: The volume of foreign aid is associated with a higher standard of living (higher per capita GDP). The final section concludes the paper and suggests some policy implications
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
