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Aid, Policies, and Growth

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  • David Dollar
  • Craig Burnside

Abstract

This paper uses a new database on foreign aid to examine the relationships among foreign aid, economic policies, and growth per capita GDP. We find that aid has a positive impact on growth in developing countries with good fiscal, monetary, and trade policies but has little effect in the presence of poor policies. Good policies are ones that are themselves important for growth. The quality of policy has only a small impact on the allocation of aid. Our results suggest that aid would be more effective if it were more systematically conditioned on good policy.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.90.4.847
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 90 (2000)
Issue (Month): 4 (September)
Pages: 847-868

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Handle: RePEc:aea:aecrev:v:90:y:2000:i:4:p:847-868

Note: DOI: 10.1257/aer.90.4.847
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Undergraduate Economics Journal Club
    by Liam Delaney in Geary Behaviour Centre on 2010-09-10 14:31:00
  2. Efficacité de l’Aide publique au développement
    by marinferry@hotmail.fr (Marin Ferry) in BS Initiative on 2013-11-26 09:36:52
  3. L’aide au développement favorise-t-elle la croissance ?
    by ? in D'un champ l'autre on 2014-06-03 23:59:00
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