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Foreign aid and str...
Foreign aid and structural transformation: Micro-level evidence from Uganda
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- Ahlerup, Pelle, 1977 (författare)
- Gothenburg University,Göteborgs universitet,Institutionen för nationalekonomi med statistik,Department of Economics
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(creator_code:org_t)
- Gothenburg : University of Gothenburg, 2019
- Engelska.
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Serie: Working Papers in Economics (online), 1403-2465
- Relaterad länk:
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https://gup.ub.gu.se...
Abstract
Ämnesord
Stäng
- History tells us that sustained economic growth, necessary to alleviate poverty in sub-Saharan Africa, requires growth in the fundamentals, such as infrastructure and human capital, but also structural transformation, i.e., a reallocation of labor from low-productivity to high-productivity sectors. I study whether foreign aid is a factor that helps or hinders structural transformation. I use a dataset on aid projects with precise coordinates from all major donors and match it to panel data with extensive information on labor market activities for a large representative sample of individuals in Uganda. I find consistent evidence that foreign aid reverses the process of structural transformation. More specifically, the local short-term effect of foreign aid is that people in areas with ongoing aid projects work more in agriculture and less in non-agricultural sectors. There are no significant effects on wages or household expenditures for people in the agricultural sector, but the effects on people in non-agricultural sectors are negative.
Ämnesord
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)
Nyckelord
- foreign aid
- structural transformation
- Africa
- AidData
- LSMS
Publikations- och innehållstyp
- vet (ämneskategori)
- rap (ämneskategori)