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Citation Khan, Haider, Ali. “Does Japanese Bilateral Aid Work? Foreign Aid and Fiscal Behaviour in a Bounded Rationality Model: The Case of Bangladesh.” Regional Development Studies 3 (1996/97): 283-298.


Title



Does Japanese Bilateral Aid Work? Foreign Aid and Fiscal Behaviour in a Bounded Rationality Model: The Case of Bangladesh

Year 1997
Author
Khan, Haider Ali Associate Professor of Economics, Graduate School of International Studies, University of Denver, Denver, CO, USA
Material Type Journal Article
Features 24 notes; 16 additional references; 3 tables; appendix (p. 298) 
Pages p. 283-298
Relationships Part of

298 p. Regional Development Studies, Vol. 3, Winter 1996/97

 

Subjects BANGLADESH 01.04.04
FOREIGN AID 01.01.01
JAPAN 01.04.04
POLICY MAKING 04.03.02
STATISTICAL ANALYSIS 18.08.01
Abstract How does bilateral Japanese foreign aid affect the allocation of government expenditures and revenues? Using a nonlinear model with asymmetric loss function and data from Bangladesh, an answer to this question was sought. The answer turns out to be dependent upon the type of policymakers. The model distinguishes between eight different types of policymakers. The most likely type for Bangladesh during the period 1975-92 turns out to be a nondevelopmentalist, statist, and fiscally-liberal type. Inflows of aid increase nondevelopment expenditures more than the development expenditures. However, Japanese aid seems to have been more successful in creating development expenditures than aid from other sources -- bilateral and multilateral. Regardless of the type of source, all aid also seems to dampen domestic revenue-raising efforts. --Journal abstract 
Control No. RDS 03l

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