Patterns of Official Development Assistance in Tajikistan: effects on growth and poverty reduction

Abstract The aim of this paper is to assess the effect of official development assistance on economic growth and poverty reduction in Tajikistan, as well as to examine the recent role of South-South Cooperation. We used a panel data set on economic growth and poverty estimates in Tajikistan, and found that a 1% increase of official development assistance provoked a 1.6% rise in per capita GDP and a 0.48% decrease in poverty levels in Tajikistan. Despite the increased relevance of South-South Cooperation in Tajikistan, the current bilateral cooperation pattern does not allow us to think South–South aid will create employment and growth opportunities.