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The Macroeconomic Effects of Foreign Aid: A Survey Author info | Abstract | Publisher info | Download info | Related research | Statistics Philipp Harms ()
Matthias Lutz ()
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Research on the macroeconomic effects of aid has expanded rapidly in recent years. In this paper, we provide a survey of this literature. We start by reviewing some theoretical models that suggest a positive impact of aid on investment and growth. We then discuss the empirical evidence, giving particular attention to the role of institutions and policies in determining aid effectiveness. As a general conclusion, we suggest adopting a more disaggregate perspective with respect both to different types of aid and to various aspects of governance.
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Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2004 with number
2004-11.
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Length: 26 pages
Date of creation: Sep 2004Date of revision:
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Keywords: foreign aid ; economic growth ; institutions ; governance ; Find related papers by JEL classification: F35 - International Economics - - International Finance - - - Foreign Aid F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
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