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The Impact of Foreign Aid on the Palestinian Economy: A Critique of Econometric Approaches for studying the Effectiveness of Foreign Aid

This thesis co'ntributes to the literature on aid effectiveness in developing economies. The inability of econometric approaches to establish clear conclusions on aid effectiveness casts doubts on its appropriateness as a research methodology. The effectiveness of foreign aid , needs to be understood as a dynamic and complex process that may not be appropriately explored using cross-country data and static econometric models. This is further complicated - , when focusing on aid effectiveness in a unique war tom economy such as Palestine. In view of the above this thesis adopts a mixed research methodoiogy utilizing both quantitative andqualitative approaches to explore a.id effectiveness as understood by public opinion leaders in Palestine. The thesis identifies specific conditions that influence aid effectiveness, which econometric models 'are unlikely to recognise. The phenomenon of the 'returnees', individualism, the Israeli closure policy and the Intifada are just some examples of what econometric models are likely to pick up on. The thesis also found that respondents believe that the effectiveness of foreign aid depends on number of factors. These include the quality of governance of the recipient, donors' strategic objectives and interests, and the role of occupation. A culture of corruption was found to be one of the most detrimental factors to aid effectiveness.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:486009
Date January 2007
CreatorsIn'airat, Mohammad Hasan Saleh
PublisherKeele University
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation

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