External assistance and alternative planning strategies : a two-sector model for Bangladesh

The authors develop an analytical two-sector planning model, geared towards analyzing policy issues with respect to external assistance, for the Bangladesh economy. Beside providing a numerical understanding of the effects of foreign aid on domestic resource mobilization, the model also points out the critical conditions that need to be fulfilled to realize desired objectives. It is found that the marginal productivity of external assistance tends to rise with the rise of the marginal rate of saving. (DÜI-Sen)