1. Foreign and Economic Development
Djankov et al gives that "unconstrained foreign aid will likely increase public consumption rather than investment (Djankov, Montalvo & Reynal 2008, p. 16) and thus the lack of investment is unlikely to promote any economic growth. ... Dedu et al find that foreign aid targeted in the provision of public consumption and funding of infrastructure crowd out foreign investment (Dedu, Staicu & Nitescu 2011). ... Specifying the type of businesses, the location for investment and the kind of investment, they argue would lead to a pareto efficient outcome, currently not achieved by aid itself. Therefo...
- Word Count: 1966
- Approx Pages: 8
- Grade Level: Undergraduate