Narayan, Diviya (2025) Decoding the aid-poverty trap: a comprehensive review of theories and evidence. International Journal of Sociology and Social Policy, NA (NA). NA-NA. ISSN 0144-333X
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This paper offers a review of theoretical and empirical literature on the effectiveness of development aid on aid recipients’ economic development.
The study employs an integrative literature review framework, combining conceptual and thematic synthesis. It focuses on two strands: the theories and empirics of indirect and direct effects of development aid and evolving discussions on blended finance and RBF (Results Based Financing).
The aid-poverty nexus remains inconclusive. Literature signals that despite large aid flows, traditional aid mechanisms are burdened with challenges. In answer to this, innovative models like Blended finance and RBF have gained prominence proving fresh promising avenues to improve aid effectiveness. This is by attracting private investments, easing risks, and incentivizing outcome-based performance in recipient countries.
This review study underscores the capability of innovative approaches like Blended Finance and RBF to overcome shortcomings of established approaches and its advancing prospective development agendas.
| Item Type: | Journal Article |
|---|---|
| Uncontrolled Keywords: | Development aid, Economic growth, Poverty eradication, Blended finance, Results based financing, Review |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Business and Economics (FBE) > School of Economics |
| Depositing User: | Diviya Narayan |
| Date Deposited: | 06 Aug 2025 02:41 |
| Last Modified: | 06 Aug 2025 02:41 |
| URI: | https://repository.usp.ac.fj/id/eprint/15119 |
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