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Development Aid and Growth in Transition Countries

Author

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  • Askarov, Zohid
  • Doucouliagos, Hristos

Abstract

Empirical studies normally analyze diverse and heterogeneous groups of countries, producing very mixed evidence on the effectiveness of development aid in promoting growth. We focus on whether aid promotes economic growth in transitional economies. We find that aid, on average, has had a positive impact on growth for this specific group of countries. This result is robust to samples, estimators, and the use of alternate instruments to address endogeneity. Aid effectiveness is not conditional on good policy and there is little evidence of non-linear growth effects arising from aid.

Suggested Citation

  • Askarov, Zohid & Doucouliagos, Hristos, 2015. "Development Aid and Growth in Transition Countries," World Development, Elsevier, vol. 66(C), pages 383-399.
  • Handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:383-399
    DOI: 10.1016/j.worlddev.2014.08.014
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    Cited by:

    1. Havranek, Tomas & Horvath, Roman & Zeynalov, Ayaz, 2016. "Natural Resources and Economic Growth: A Meta-Analysis," World Development, Elsevier, vol. 88(C), pages 134-151.
    2. Askarov, Zohid & Doucouliagos, Hristos, 2015. "Spatial aid spillovers during transition," European Journal of Political Economy, Elsevier, vol. 40(PA), pages 79-95.
    3. repec:zag:zirebs:v:20:y:2017:i:1:p:101-112 is not listed on IDEAS
    4. repec:bla:afrdev:v:29:y:2017:i:3:p:376-388 is not listed on IDEAS

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