Can the two new aid-growth models be replicated?
AbstractRecent aid effectiveness literature centers on two competing models from the family of conditional models: The Good Policy Model, where the key feature is policy times aid, and the Medicine Model, where it is aid squared. Both models were reached on a sample of 1/3 of the available data. The models are simplified to be replicatable on more of the data. Within-sample the Good Policy Model proves fragile, while the Medicine Model is more robust. Both models fail in out-of-sample replications. A semi-parametric technique is used to test for an unknown functional form of the aid-growth term. It rejects that aid is statistically significant. Copyright Springer Science + Business Media, Inc. 2006
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 127 (2006)
Issue (Month): 1 (April)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100332
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Finn Tarp, 2006.
"Aid and Development,"
06-12, University of Copenhagen. Department of Economics.
- Burnside, Craig & Dollar, David, 1997.
"Aid, policies, and growth,"
Policy Research Working Paper Series
1777, The World Bank.
- Dollar, David & Alesina, Alberto, 2000.
"Who Gives Foreign Aid to Whom and Why?,"
4553020, Harvard University Department of Economics.
- C-J. Dalgaard & H. Hansen, 2001. "On Aid, Growth and Good Policies," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(6), pages 17-41.
- Levine, Ross & Renelt, David, 1991.
"A sensitivity analysis of cross-country growth regressions,"
Policy Research Working Paper Series
609, The World Bank.
- Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September.
- Paul Collier & David Dollar, 2004. "Development effectiveness: what have we learnt?," Economic Journal, Royal Economic Society, vol. 114(496), pages F244-F271, 06.
- Hristos Doucouliagos & Martin Paldam, 2006.
"Aid Effectiveness on Accumulation: A Meta Study,"
Wiley Blackwell, vol. 59(2), pages 227-254, 05.
- Barro, Robert J, 1974.
"Are Government Bonds Net Wealth?,"
Journal of Political Economy,
University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
- Hristos Doucouliagos & Martin Paldam, 2005. "Aid Effectiveness on Growth. A Meta Study," Economics Working Papers 2005-13, School of Economics and Management, University of Aarhus.
- George Mavrotas, 2002. "Foreign aid and fiscal response: Does aid disaggregation matter?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(3), pages 534-559, September.
- Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
- Xavier X. Sala-i-Martin, 1997.
"I Just Ran Four Million Regressions,"
NBER Working Papers
6252, National Bureau of Economic Research, Inc.
- Lensink, Robert & White, Howard, 1999.
"Are there negative returns to aid?,"
99E60, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Roberto Ricciuti, 2003. "Assessing Ricardian Equivalence," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 55-78, February.
- Michael Clemens & Steven Radelet & Rikhil Bhavnani, 2004.
"Counting Chickens When They Hatch: The Short-term Effect of Aid on Growth,"
44, Center for Global Development.
- Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting chickens when they hatch: The short-term effect of aid on growth," International Finance 0407010, EconWPA.
- Hristos Doucouliagos & Martin Paldam, 2005.
"Conditional Aid Effectiveness. A Meta Study,"
Economics Working Papers
2005-14, School of Economics and Management, University of Aarhus.
- Charles C. Chang & Eduardo Fernández-Arias & Luis Serven, 1998.
"Measuring Aid Flows: A New Approach,"
Research Department Publications
4146, Inter-American Development Bank, Research Department.
- John Hudson, 2004. "Introduction: Aid and Development," Economic Journal, Royal Economic Society, vol. 114(496), pages F185-F190, 06.
- Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398.
- Kilby, Christopher & Dreher, Axel, 2010.
"The impact of aid on growth revisited: Do donor motives matter?,"
Elsevier, vol. 107(3), pages 338-340, June.
- Christopher Kilby & Axel Dreher, 2009. "The Impact of Aid on Growth Revisited: Do Donor Motives Matter?," KOF Working papers 09-225, KOF Swiss Economic Institute, ETH Zurich.
- Christopher Kilby & Axel Dreher, 2009. "The Impact of Aid on Growth Revisited: Do Donor Motives Matter?," Ibero America Institute for Econ. Research (IAI) Discussion Papers 191, Ibero-America Institute for Economic Research.
- Kilby, Christopher & Dreher, Axel, 2009. "The Impact of Aid on Growth Revisited: Do Donor Motives Matter?," IZA Discussion Papers 4156, Institute for the Study of Labor (IZA).
- Christopher Kilby & Axel Dreher, 2009. "The Impact of Aid on Growth Revisited: Do Donor Motives Matter?," Villanova School of Business Department of Economics and Statistics Working Paper Series 5, Villanova School of Business Department of Economics and Statistics.
- Chris Doucouliagos & T.D. Stanley, 2013. "Are All Economic Facts Greatly Exaggerated? Theory Competition And Selectivity," Journal of Economic Surveys, Wiley Blackwell, vol. 27(2), pages 316-339, 04.
- Felicitas Nowak-Lehmann D. & Inmaculada Martínez-Zarzoso & Dierk Herzer & Stephan Klasen & Axel Dreher, 2009. "In Search for a Long-run Relationship between Aid and Growth: Pitfalls and Findings," Ibero America Institute for Econ. Research (IAI) Discussion Papers 196, Ibero-America Institute for Economic Research.
- Sergio Tezanos Vázquez, 2009. "Geopolítica de la ayuda ¿Cómo optimizar el impacto de la ayuda sobre el crecimiento?," Documentos de trabajo sobre cooperaciÃ³n y desarrollo 200903, Cátedra de Cooperación Internacional y con Iberoamérica (COIBA), Universidad de Cantabria.
- Hristos Doucouliagos & T.D. Stanley, 2008. "Theory Competition and Selectivity: Are All Economic Facts Greatly Exaggerated?," Economics Series 2008_06, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- George Economides & Sarantis Kalyvitis & Apostolis Philippopoulos, 2008. "Does foreign aid distort incentives and hurt growth? Theory and evidence from 75 aid-recipient countries," Public Choice, Springer, vol. 134(3), pages 463-488, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.