Format du dépôt |
Fichier |
Type de dépôt |
Pré-publication, Document de travail |
Titre |
en
Development loans, poverty trap, and economic dynamics
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Résumé |
en
This paper investigates the nexus between foreign aid (in the form of loans), poverty trap, and economic development in a recipient country by using a Solow model with two new ingredients: a development loan and a fixed cost in the production process. The presence of this fixed cost generates a poverty trap. Development loans may help the country to escape from the poverty trap and converge to a stable steady-state in the long run, but only if (i) the country's characteristics, such as saving rate, initial capital, governance quality, and in particular productivity, are good enough, (ii) the fixed cost is relatively low, and (iii) loans rule is generous enough. We also show that there is room for endogenous cycles in our model, unlike the standard Solow model.
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Auteur(s)
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Cuong Le Van
1, 2, 3
, Ngoc-Sang Pham
4, 5
, Thi Kim Cuong Pham
6, 7
1
IPAG Business School
( 542840 )
- 184 boulevard Saint-Germain, 75006 Paris
- France
2
TIMAS, Thang Long University
( 1079681 )
- Viêt Nam
3
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
-
Université Paris 1 Panthéon-Sorbonne ( 7550 )
;
-
École normale supérieure - Paris ( 59704 )
;
-
Université Paris Sciences et Lettres ( 564132 )
;
-
École des hautes études en sciences sociales ( 99539 )
;
-
École des Ponts ParisTech ( 301545 )
;
-
Centre National de la Recherche Scientifique ( 441569 )
;
-
Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement ( 577435 )
4
Métis Lab EM Normandie
( 150910 )
- 30 rue de Richelieu 76600 Le Havre
- France
-
École de Management de Normandie ( 301735 )
5
EM Normandie -
École de Management de Normandie
( 301735 )
- 30, rue de Richelieu 76000 Le Havre
- France
6
EconomiX -
EconomiX
( 2564 )
- Bâtiment G
200 Avenue de la République
92001 NANTERRE CEDEX
- France
-
Université Paris Nanterre UMR7235 ( 116205 )
;
-
Centre National de la Recherche Scientifique UMR7235 ( 441569 )
7
University of Paris Nanterre
( 1071932 )
- France
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Langue du document |
Anglais
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Domaine(s) |
-
Sciences de l'Homme et Société/Economies et finances
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Économie et finance quantitative [q-fin]
|
Mots-clés (JEL) |
-
O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development
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O - Economic Development, Innovation, Technological Change, and Growth/O.O4 - Economic Growth and Aggregate Productivity
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Mots-clés |
en
Economic dynamics, economic growth, foreign aid, development loan, poverty trap
|