02263cas a2200265 a 4500 AALejournalIMF005638 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871838 1018-5941 BD-DhAAL BD-DhAAL Sacerdoti, Emilio. The Macroeconomic Impact of Scaled-Up Aid : The Case of Niger / Emilio Sacerdoti, Gonzalo Salinas, Abdikarim Farah. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We develop a simple macroeconomic model that assesses the effects of higher foreign aid on output growth and other macroeconomic variables, including the real exchange rate. The model is easily tractable and requires estimation of only a few basic parameters. It takes into account the impact of aid on physical and human capital accumulation, while recognizing that the impact of the latter is more protracted. Application of the model to Niger-one of the poorest countries in the world-suggests that if foreign aid as a share of GDP were to be permanently increased from the equivalent of 10 percent of GDP in 2007 to 15 percent in 2008, annual economic growth would accelerate by more than 1 percentage point, without generating significant risks for macroeconomic stability. As a result, by 2020 Niger's income per capita would be 12.5 percent higher than it would be without increased foreign aid. Moreover, the higher growth would help Niger to cut the incidence of poverty by 25 percent by 2015, although the country will still be unable to reach the Millennium Development Goal of poverty reduction (MDG 1). Mode of access: Internet Farah, Abdikarim. Salinas, Gonzalo. IMF Working Papers; Working Paper ; No. 2009/036 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/036/001.2009.issue-036-en.xml IMF e-Library