Conditional Aid Effectiveness. A Meta Study
AbstractThe AEL (aid effectiveness literature) studies the effect of development aid using econome¬ trics on macro data. It contains about 100 papers of which a third analyzes conditional models where aid effectiveness depends upon z, so that aid only works for a certain range of the variable. The key term in this family of AEL models is thus an interaction term of z times aid. The leading candidates for z are a good policy index and aid itself. In this paper, meta- analysis techniques are used (i) to determine whether the AEL has established the said interaction terms, and (ii) to identify some of the determinants of the differences in results between studies. Taking all available studies in consideration, we find no support for conditionality with respect to policy, while conditionality regarding aid itself is dubious. However, the results differ depending on the authors’ institutional affiliation.
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Bibliographic InfoPaper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2005-14.
Date of creation: 21 Jul 2005
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Web page: http://www.econ.au.dk/afn/
Aid effectiveness; meta study; economic growth; policy conditionality;
Other versions of this item:
- B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925
- F35 - International Economics - - International Finance - - - Foreign Aid
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"Measuring Aid Flows: A New Approach,"
Research Department Publications
4146, Inter-American Development Bank, Research Department.
- T. D. Stanley, 2005. "Beyond Publication Bias," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 309-345, 07.
- 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.
- Herbertsson, Tryggvi Thor & Martin Paldam, 2005. "Does development aid help poor countries catch up?," Economics Working Papers 2005-16, School of Economics and Management, University of Aarhus.
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