Advanced Search
MyIDEAS: Login

Aid, Growth, and Development Have We Come Full Circle?

Contents:

Author Info

  • Channing, Arndt
  • Jones, Sam
  • Tarp, Finn

Abstract

The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature doubts the ability of foreign aid to foster economic growth and development. This paper assesses the aid-growth literature and, taking inspiration from the program evaluation literature, we re-examine key hypotheses. In our findings, aid has a positive and statistically significant causal effect on growth over the long run, with confidence intervals conforming to levels suggested by growth theory. Aid remains a key tool for enhancing the development prospects of poor countries.

Download Info

If 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.
File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2010/wp2010-96.pdf
Download Restriction: no

Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number wp2010-96.

as in new window
Length: 38 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:unu:wpaper:wp2010-96

Contact details of provider:
Postal: Katajanokanlaituri 6B, 00160 Helsinki
Phone: +358-9-6159911
Fax: +358-9-61599333
Email:
Web page: http://www.wider.unu.edu/
More information through EDIRC

Related research

Keywords: Foreign aid; growth; aid effectiveness; causal effects;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Berthelemy, Jean-Claude & Tichit, Ariane, 2004. "Bilateral donors' aid allocation decisions--a three-dimensional panel analysis," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 253-274.
  2. Enrique Moral-Benito, 2010. "Determinants of economic growth: A Bayesian panel data approach," Banco de España Working Papers 1031, Banco de España.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Increasing aid, wasting money?
    by Terence Wood in Development Policy Blog on 2011-07-19 19:50:06
  2. Should aid focus on economic development? (part 2)
    by Terence Wood in Development Policy Blog on 2011-05-25 06:11:26
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Lukasz Marc, 2012. "New Evidence on Fungibility at the Aggregate Level," Tinbergen Institute Discussion Papers 12-083/2, Tinbergen Institute.
  2. Tseday Jemaneh Mekasha & Finn Tarp, 2011. "Aid and Growth What Meta-Analysis Reveals," Working Papers UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  3. Subhayu Bandyopadhyay & Sajal Lahiri & Javed Younas, 2011. "Should easier access to international credit replace foreign aid?," Working Papers 2011-023, Federal Reserve Bank of St. Louis.
  4. Gravier-Rymaszewska, Joanna, 2012. "How Aid Supply Responds to Economic Crises: A Panel VAR Approach," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers 2011/35, Maastricht School of Management.
  6. Hristos Doucouliagos & Martin Paldam, 2012. "The robust result in meta-analysis of aid effectiveness: A response to Mekasha and Tarp," Economics Series 2012_4, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  7. Denizer, Cevdet & Dethier, Jean-Jacques & Gelb, Alan, 2011. "Development Economics and the International Development Association," Policy Research Working Paper Series 5541, The World Bank.
  8. Channing Arndt & Sam Jones & Finn Tarp, 2011. "Aid Effectiveness: Opening the Black Box," Working Papers UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  9. Joaquin Morales Belpaire, 2012. "Decentralized Aid and Democracy," Working Papers 1212, University of Namur, Department of Economics.
  10. Pietro Alessandrini & Andrea Presbitero, 2012. "Low-Income Countries and an SDR-based International Monetary System," Open Economies Review, Springer, vol. 23(1), pages 129-150, February.
  11. González, Mariano & Larrú, José María, 2012. "Egalitarian aid. The impact of aid on Latin American inequality," MPRA Paper 41660, University Library of Munich, Germany.
  12. Katarina Juselius & Niels Framroze & Finn Tarp, 2011. "The Long-Run Impact of Foreign Aid in 36 African Countries: Insights from Multivariate Time Series Analysis," Working Papers UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  13. Mark McGillivray & David Fielding & Sebastian Torres & Stephen Knowles, 2011. "Does Aid Work for the Poor?," Working Papers 1114, University of Otago, Department of Economics, revised Dec 2011.
  14. Manning, Richard, 2012. "Aid as a Second-Best Solution: Seven Problems of Effectiveness and How to Tackle Them," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  15. Roe, Alan R., 2011. "Aid and the Fiscal and Monetary Responses to Dutch Disease," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp2010-96

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.