TY - BOOK ID - 11263489 TI - The Macroeconomic Impact of Scaled-Up Aid : The Case of Niger AU - Sacerdoti, Emilio. AU - Farah, Abdikarim. AU - Salinas, Gonzalo. AU - International Monetary Fund. PY - 2009 SN - 1451916191 1462364861 145187183X 9786612842580 1282842587 1452728887 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Business & Economics KW - Economic History KW - Economic assistance KW - Economic development KW - Development, Economic KW - Economic growth KW - Growth, Economic KW - Economic aid KW - Foreign aid program KW - Foreign assistance KW - Grants-in-aid, International KW - International economic assistance KW - International grants-in-aid KW - Economic policy KW - Economics KW - Statics and dynamics (Social sciences) KW - Development economics KW - Resource curse KW - International economic relations KW - Conditionality (International relations) KW - Exports and Imports KW - Foreign Exchange KW - Investments: General KW - Labor KW - Investment KW - Capital KW - Intangible Capital KW - Capacity KW - Macroeconomics: Production KW - Forecasting and Simulation: Models and Applications KW - Macroeconomic Analyses of Economic Development KW - Measurement of Economic Growth KW - Aggregate Productivity KW - Cross-Country Output Convergence KW - Human Capital KW - Skills KW - Occupational Choice KW - Labor Productivity KW - Foreign Aid KW - Labour KW - income economics KW - Currency KW - Foreign exchange KW - International economics KW - Macroeconomics KW - Human capital KW - Real exchange rates KW - Foreign aid KW - Aid flows KW - Private investment KW - National accounts KW - International relief KW - Saving and investment KW - Niger KW - Income economics UR - https://www.unicat.be/uniCat?func=search&query=sysid:11263489 AB - We develop a simple macroeconomic model that assesses the effects of higher foreign aid on output growth and other macroeconomic variables, including the real exchange rate. The model is easily tractable and requires estimation of only a few basic parameters. It takes into account the impact of aid on physical and human capital accumulation, while recognizing that the impact of the latter is more protracted. Application of the model to Niger-one of the poorest countries in the world-suggests that if foreign aid as a share of GDP were to be permanently increased from the equivalent of 10 percent of GDP in 2007 to 15 percent in 2008, annual economic growth would accelerate by more than 1 percentage point, without generating significant risks for macroeconomic stability. As a result, by 2020 Niger's income per capita would be 12.5 percent higher than it would be without increased foreign aid. Moreover, the higher growth would help Niger to cut the incidence of poverty by 25 percent by 2015, although the country will still be unable to reach the Millennium Development Goal of poverty reduction (MDG 1). ER -