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The ineffectiveness of development aid on growth: An update

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  • Doucouliagos, Hristos
  • Paldam, Martin

Abstract

This note deals with a paradox: A literature growing exponentially even though it keeps finding the same (disappointing) results. We draw upon 1217 estimates of aid effectiveness of which 676 are reported in recent years, to examine three subjects: (S1) Has the literature finally overcome the aid ineffectiveness result? (S2) Increasingly studies try to adjust for simultaneity bias. Has the evidence shown the existence of this bias? To these two questions the answer remains "no". However, (S3) new evidence suggests that some aid components may have a positive effect on growth. This is a promising new result, but it is not yet confirmed by independent replication.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 27 (2011)
Issue (Month): 2 (June)
Pages: 399-404

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Handle: RePEc:eee:poleco:v:27:y:2011:i:2:p:399-404

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Web page: http://www.elsevier.com/locate/inca/505544

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Keywords: Aid effectiveness Meta-regression analysis Economic growth;

References

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Citations

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Cited by:
  1. repec:cge:warwcg:48 is not listed on IDEAS
  2. Acharya, Arnab & Alvarez, Melisa Mart.nez, 2012. "Aid Effectiveness in the Health Sector," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Tilman Brück & Guo Xu, 2011. "Who Gives Aid to Whom and When?: Aid Accelerations, Shocks and Policies," Economics of Security Working Paper Series 49, DIW Berlin, German Institute for Economic Research.
  4. Brech, Viktor & Potrafke, Niklas, 2014. "Donor ideology and types of foreign aid," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 61-75.
  5. Tseday Jemaneh Mekasha & Finn Tarp, 2011. "Aid and Growth What Meta-Analysis Reveals," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  6. Waisman, Henri & Rozenberg, Julie & Hourcade, Jean Charles, 2013. "Monetary compensations in climate policy through the lens of a general equilibrium assessment: The case of oil-exporting countries," Energy Policy, Elsevier, vol. 63(C), pages 951-961.
  7. Zohid Askarov & Hristos Doucouliagos, 2013. "Does aid improve democracy and governance? A meta-regression analysis," Public Choice, Springer, vol. 157(3), pages 601-628, December.
  8. Lazzaroni, S. & van Bergeijk, P.A.G., 2013. "Natural disasters impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," ISS Working Papers - General Series 554, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  9. Kalyvitis, Sarantis & Vlachaki, Irene, 2012. "When does more aid imply less democracy? An empirical examination," European Journal of Political Economy, Elsevier, vol. 28(1), pages 132-146.
  10. Martin Paldam, 2013. "Regression Costs Fall, Mining Ratios Rise, Publication Bias Looms, and Techniques Get Fancier: Reflections on Some Trends in Empirical Macroeconomics," Econ Journal Watch, Econ Journal Watch, vol. 10(2), pages 136-156, May.
  11. Crafts, Nicholas, 2011. "The Marshall Plan: A Reality Check," CAGE Online Working Paper Series 49, Competitive Advantage in the Global Economy (CAGE).
  12. Beekman, Gonne & Bulte, Erwin H. & Nillesen, Eleonora E.M., 2013. "Corruption and economic activity: Micro level evidence from rural Liberia," European Journal of Political Economy, Elsevier, vol. 30(C), pages 70-79.
  13. repec:cge:warwcg:57 is not listed on IDEAS
  14. Raschky, Paul A. & Schwindt, Manijeh, 2012. "On the channel and type of aid: The case of international disaster assistance," European Journal of Political Economy, Elsevier, vol. 28(1), pages 119-131.
  15. González, Mariano & Larrú, José María, 2012. "Egalitarian aid. The impact of aid on Latin American inequality," MPRA Paper 41660, University Library of Munich, Germany.
  16. Justesen, Mogens K., 2012. "Democracy, dictatorship, and disease: Political regimes and HIV/AIDS," European Journal of Political Economy, Elsevier, vol. 28(3), pages 373-389.
  17. Ferreira, I.A.R. & Simoes, M.C.N., 2013. "Aid And Growth: A Comparative Study Between Sub-Saharan Africa And Asia," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 113-132.
  18. Crafts, Nicholas, 2011. "Economic History Matters," CAGE Online Working Paper Series 58, Competitive Advantage in the Global Economy (CAGE).

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