Macro Performance, Fiscal Behavior, and Water Investments: Three Essays on the Effects of Foreign Aid in Bangladesh
Quazi, Rahim Masudur
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https://hdl.handle.net/2142/85661
Description
Title
Macro Performance, Fiscal Behavior, and Water Investments: Three Essays on the Effects of Foreign Aid in Bangladesh
Author(s)
Quazi, Rahim Masudur
Issue Date
1999
Doctoral Committee Chair(s)
Rashid, Salim
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Agricultural
Language
eng
Abstract
The third essay illustrates the deficiencies of traditional planning approaches to aid financed water investments and demonstrates the importance of embedding the macroeconomic linkages of agricultural into planning framework. First, a dynamic cost minimization model is utilized to compute the minimum amount of investments needed in various water projects such that an exogenously set agricultural growth target can be met. Next, the minimum cost solution is again derived accounting for the macroeconomic linkages of agriculture in a joint agro-macro model. The differences in the optimal solutions obtained from the two models suggest that foreign aid is commonly allocated into financing water investments that are non-optimally planned.
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