Role of Environmental Aid in Economic Growth and Poverty Reduction : Evidence from Bangladesh (1)
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概要
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A great deal of study on cross country literature and some on specific country literatures have set an appeal that growth is inevitable for poverty alleviation. Growth is also commonly viewed as economic element unfavorable to environment. Under the circumstances how a sustainableeconomic growth can be achieved while preserving the environment and at the same time reducing the poverty from the context of Bangladesh, is the objective of this paper. From a country specific perspective, it intends to find a causal link between growth and poverty of Bangladesh and aid has been instrumented based on the thinking that specific type of aid（specially the aid targeted at the environmental projects）leads to economic growth through protection of environment. The first part of this paper rationalized the relationship between aid and growth and the second part showed the effects of growth on poverty. This study has urged that, in Bangladesh, generalized aid does not attach positive contribution to GDP growth rather categorical aid is more efficient than generalized aid, provided it ought to be treated under good policy environment. We separated aid from generalized aid to environmental one. Itdemonstrated that under shocking policy-environment neither nonenvironmental aid nor environmental aid does work; if aid is got to workit should be entrusted with good policy environment. Specifically environmental aid treating under good policy environment results in increase in growth which means that with preservation of environment with the support of environmental aid we can accelerate economic growth and reduce poverty in Bangladesh, if government has appropriate policies towards it. Although this truth is not applicable to other countries but it validates when we consider Bangladesh as a case study country.
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