Does the distribution of foreign development assistance depend on the organizational capacity of the recipient organization? The author argues that employees at donor agencies seek signals of which recipients will implement aid most effectively, and use these signals to determine the destination...

This paper examines the impact of trade and fiscal reforms and of the 1994 devaluation of the CFA franc on enterprise development in Chad and Gabon. These reforms provide a natural experiment to assess the impact of trade liberalization in countries with a small and backward manufacturing...

Empirical evidence suggests (i) that the real exchange rates of developing economies show less persistence than do those of more advanced economies, and (ii) that the elasticity of substitution between capital and labor tends to increase from below unity for less developed economies to above one...

This paper uses VAR techniques to investigate the potential for forming monetary unions in Eastern and Southern Africa. All countries in the sample are members of various regional economic organizations. Some of the organizations have a monetary union as an immediate objective whereas others...

This paper analyzes the effects of trade liberalization of tariff-rate quotas under import "state trading enterprises" (STEs) in agriculture. An analytical framework is provided to determine the importance of which instrument is binding under competition (the in-quota or out-of-quota tariff or...

Evaluation is generally considered as an important tool to ensure the effective use of development aid, but it is itself subject to distortions. To derive institutional conditions conducive to effective evaluation, we develop a multi-level principal-agent model focusing on the interests of the...

This paper constructs a dynamic North-South trade model with outsourcing and endogenous innovation. Production of high quality goods is first performed in the North (Northern phase), then split between the North and the South (Outsourcing phase), and finally shifted to the South (Southern...

The present paper examines the impact of different aid types, namely project aid, program aid, technical assistance, and food aid on the fiscal sector of the aid-recipient economy by using time-series data for Côte d'Ivoire over the period 1975-99. Our empirical results show that when a single...