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Effects of German development aid on the internal economy

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Intereconomics

Abstract

The importance of economic cooperation with the Third World for the internal economy is attracting increasing attention in the discussion of development aid topics in the Federal Republic of Germany1. In this context it is of interest how the German development aid bears on the internal economy of the Federal Republic through feedbacks (in the form of contracts for German firms) from its bilateral and multilateral development aid payments. The following article presents the results of a relevant inquiry for the year 19762.

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References

  1. The Federal Republic of Germany is by no means the only country in which this point has been discussed. Cf., amongst other, R. Gerster: Schweizerisches Volkseinkommen und Dritte Welt (Swiss national income and the Third World), in: Aussenwirtschaft, Vol 31 (1976), No. 1, p.33ff; P. V. Saladin: Bedeutung der multilateralen Entwicklungsfinanzierungsinstitute für die schwelzerische Wirtscratt (Importance of the multilateral development finance institutions for the Swiss economy), in; Aussenwirtschaft, Bol 31 (1976), No. 4, p. 301ff.

  2. Cf. also H. E. Grundmann: The Effects of Development Aid on Exports, in: INTERECONOMICS, No. 9/10 (1978), p.242ff.

  3. R. Pischner, R. Stäglin, H. Wessels: Input-Output-Rechnung für die Bundesrepublik Deutschland 1972 (Input-Output Account for the Federal Republic of Germany 1972), in: DIW-Beiträge zur Strukturforschung, No. 38 (1975).

  4. R. Pischner, R. Stäglin: Darstellung des um den Keynes’schen Multiplikator erweiterten offenen statischen Input-Output-Modells (Presentation of the open static input-output model augmented by the Keynesian multiplier), in: Mitteilungen aus der Arbeitsmarkt-und Berufsforschung, No. 3 (1976), p.345.

  5. cf. R. Rau: Die Struktur des privaten Verbrauchs 1980 und 1985 (The pattern of private consumption in 1980 and 1985), in: Mitteilungen des RWI, Vol. 25 (1974), p.237–250; by the same author: Die Struktur des privaten Verbrauchs 1985 (The pattern of private consumption in 1985), in: Mitteilungen des RWI, Vol.27 (1976), p.249–264. The ratio of consumption to gross incomes from employment and from entrepreneurial activities and property was assumed to be 50%; cf. R. Stäglin and others: Multiplikatorwirkungen des Konjunkturprogramms von 1975. Anwendung des um den Keynes’schen Multiplikator erweiterten Input-Output-Modells (Multiplier effects of the economic programme of 1975. Application of the input-output model augmented by the Keynesian multiplier), in: DIW-Beiträge zur Strukturforschung No.45 (1976), p.8–10.

  6. Cf. D. Teichmann: Bestimmungsgründe der direkten Steuern. Ergebnisse einer multiplen Regressionsanalyse der direkten Steuern der Arbeitgeber und der Arbeitnehmer (Determinants of direct Taxes. Results of a multiple regression analysis of the direct taxes of employers and employees), in: Vierteljahreshefte zur Wirtschaftsforschung des DIW, No.3 (1976).

  7. Cf. E. Spitznagel: Anwendung des erweiterten Input-Output-Modells auf das „Programm zur Stärkung der Bau-und anderen Investitionen” (Application of the extended input-output model to the „Programme for the boosting of building and other investments”), in: Mitteilungen aus der Arbeitsmarkt-und Berufsforschung, No.3 (1976), p.350–362.

  8. Statistisches Bundesamt, Fachserie 7, Außenhandel, Reihe 7, Außenhandel nach Ländern und Waren der Industriestatistik (Spezialhandel), 1976.

  9. For detailed information cf. G. Ashoff, D. Weiss: Binnenwirtschaftliche Wirkungen der deutschen Entwicklungspolitik.— Tabellenanhang (Effects of the German development policy on the internal economy—Statistical appendix), Berlin 1978. Great Britain records a relatively high share only for the contracts placed with UNDP funds.

  10. cf. D. Schumacher: 800 000 Erwerbstätige für den Export in Entwicklungsländer beschäftigt (800,000 workers employed on exports to developing countries), in: DIW-Wochenbericht No.5 (1978), p.58.

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Authors and Affiliations

  1. Berlin

    Guido Ashoff & Dieter Weiss

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  1. Guido Ashoff
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  2. Dieter Weiss
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Additional information

German institute for Development Policy.—The article is based on an inquiry which was carried out last year. The information on return flows of German bilateral capital aid has been extracted from „Sonderuntersuchung über die Verwendung der Kapitalhilfeauszahlungen nach Lieferländern, Lieferbranchen und Warengruppen” (Special inquiry into the application of capital aid disbursements, by supplying countries, supplying industries and commodity groups) by the Reconstruction Loan Corporation (Kreditanstalt für Wiederaufbau) Frankfurt. This kind of inquiry was first undertaken for 1976 and corresponding data have in the meantime been made available also for 1977.

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Ashoff, G., Weiss, D. Effects of German development aid on the internal economy. Intereconomics 14, 215–220 (1979). https://doi.org/10.1007/BF02924563

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