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On the Two-Gap Analysis of Foreign Aid

Published online by Cambridge University Press:  01 September 1975

Mitsuo Ezaki
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Extract

The objective of this paper is to clarify the welfare implications of the two-gap analysis of foreign aid concentrating on the model developed by Chenery and Strout (1966) and to provide related numerical examples for four Southeast Asian countries (Republic of Vietnam, Thailand, Indonesia and the Philippines) where the real series in national income statistics are available.

The two gaps are of course the investment-saving gap (IS gap) and the importexport gap (ME gap), both of which are in the ex ante sense and must be consistent with the target growth rate of output.

Type
Articles
Information
Journal of Southeast Asian Studies , Volume 6 , Special Issue 2: Essays by Japanese Scholars in the Center for Southeast Asian Studies at Kyoto University , September 1975 , pp. 151 - 163
Copyright
Copyright © The National University of Singapore 1975

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References

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