Foreign Aid and Economic Development: Tanzania's Experience with ODA

DOI HANDLE オープンアクセス
  • Rotarou Elena
    PhD Candidate, Graduate School of Economics, Kyoto University
  • Ueta Kazuhiro
    Professor, Graduate School of Economics and Graduate School of Global Environmental Studies, Kyoto University

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抄録

The paper deals with official development assistance (ODA) to Tanzania and its impact on economic growth and poverty reduction. Although there has been much debate about the relationship between foreign aid and economic development, in Tanzania's case, econometric analysis shows a significant dependence of GDP growth on ODA flows. On the other hand, ODA has not had much impact on poverty reduction, despite the efforts made by donors and the Tanzanian government to achieve the Millennium Development Goals. Overall, ODA has been beneficial to the country's economic growth, but only because other factors — implementation of sound macroeconomic policies, increase in foreign direct investment (FDI) , stable political and economic environment — were also present.<BR>In order to underline the importance of ODA, this paper also presents the impact of FDI, trade, and remittances on Tanzania's economic development, and concludes that, by comparison, ODA has been the most influential factor in the country's recent growth. It is argued that due to the ongoing financial crisis and the reduction in aid flows, the Tanzanian government needs to look at other sources of financing — public-private partnership, external borrowing, increased domestic revenue — in order to improve investment rate and eventually graduate from aid.

収録刊行物

  • The Kyoto Economic Review

    The Kyoto Economic Review 78 (2), 157-189, 2009-12

    Graduate School of Economics, Kyoto University

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詳細情報 詳細情報について

  • CRID
    1390009224302626688
  • NII論文ID
    120002056327
  • NII書誌ID
    AA12010346
  • DOI
    10.11179/ker.78.157
  • HANDLE
    2433/108640
  • ISSN
    13496786
  • 本文言語コード
    en
  • データソース種別
    • JaLC
    • IRDB
    • CiNii Articles
    • KAKEN
  • 抄録ライセンスフラグ
    使用可

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