Josepa Miquel-Florensa () (Department of Economics, York University)
Abstract
We evaluate the differential effects of Tied and Untied aid on growth, and how these effects vary with the policy environment of the recipient country. To do so, we use Burnside and Dollar (2000) and Easterly, Levine and Roodman (2003) datasets. We find that aid effectiveness is not significantly different for the two types of aid. However, when we condition on policies, we find that untied aid has a greater impact on growth than tied aid. We find that this difference is significant for the sample of low and middle-income countries, and is not statistically significant, but consistent in sign for the sub sample of low-income countries.
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Publisher Info
Paper provided by York University, Department of Economics in its series Working Papers with number
2007_3.
Find related papers by JEL classification: F35 - International Economics - - International Finance - - - Foreign Aid O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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