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The Robust Result in Meta-analysis of Aid Effectiveness: A Response to Mekasha and Tarp

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  • Hristos Doucouliagos
  • Martin Paldam

Abstract

In this response to Mekasha and Tarp (2013) we show that contrary to what they state, their study validates our basic analysis. They confirm that the literature finds that aid is of little economic importance in generating growth. The results also show that the literature systematically selects control variables for their effect on aid effectiveness. We argue that their choice of the random effects model is not appropriate for the problem at hand, and that the way they use multiple meta-regression analysis contradicts the robust results reached at the basic analysis.

Suggested Citation

  • Hristos Doucouliagos & Martin Paldam, 2013. "The Robust Result in Meta-analysis of Aid Effectiveness: A Response to Mekasha and Tarp," Journal of Development Studies, Taylor & Francis Journals, vol. 49(4), pages 584-587, April.
    • Handle: RePEc:taf:jdevst:v:49:y:2013:i:4:p:584-587
    DOI: 10.1080/00220388.2013.764595
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    1. Tseday Jemaneh Mekasha & Finn Tarp, 2013. "Aid and Growth: What Meta-Analysis Reveals," Journal of Development Studies, Taylor & Francis Journals, vol. 49(4), pages 564-583, April.
    2. Hristos Doucouliagos & Martin Paldam, 2010. "Conditional aid effectiveness: A meta-study," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(4), pages 391-410.
    3. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    4. Channing Arndt & Sam Jones & Finn Tarp, 2009. "Aid and Growth: Have We Come Full Circle?," WIDER Working Paper Series DP2009-05, World Institute for Development Economic Research (UNU-WIDER).
    5. Hristos Doucouliagos & Martin Paldam, 2009. "The Aid Effectiveness Literature: The Sad Results Of 40 Years Of Research," Journal of Economic Surveys, Wiley Blackwell, vol. 23(3), pages 433-461, July.
    6. Steven B. Caudill & Randall G. Holcombe, 1999. "Specification Search and Levels of Significance in Econometric Models," Eastern Economic Journal, Eastern Economic Association, vol. 25(3), pages 289-300, Summer.
    7. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2004. "On The Empirics of Foreign Aid and Growth," Economic Journal, Royal Economic Society, vol. 114(496), pages 191-216, June.
    8. Hristos Doucouliagos & Martin Paldam, 2013. "The Robust Result in Meta-analysis of Aid Effectiveness: A Response to Mekasha and Tarp," Journal of Development Studies, Taylor & Francis Journals, vol. 49(4), pages 584-587, April.
    9. Arndt Channing & Jones Sam & Tarp Finn, 2010. "Aid, Growth, and Development: Have We Come Full Circle?," Journal of Globalization and Development, De Gruyter, vol. 1(2), pages 1-29, December.
    10. Hristos Doucouliagos & Martin Paldam, 2006. "Aid Effectiveness on Accumulation: A Meta Study," Kyklos, Wiley Blackwell, vol. 59(2), pages 227-254, May.
    11. Doucouliagos, Hristos & Paldam, Martin, 2011. "The ineffectiveness of development aid on growth: An update," European Journal of Political Economy, Elsevier, vol. 27(2), pages 399-404, June.
    12. Tseday Jemaneh Mekasha & Finn Tarp, 2013. "Aid and Growth: What Meta-Analysis Reveals," Journal of Development Studies, Taylor & Francis Journals, vol. 49(4), pages 564-583, April.
    13. Arndt Channing & Jones Sam & Tarp Finn, 2010. "Aid, Growth, and Development: Have We Come Full Circle?," Journal of Globalization and Development, De Gruyter, vol. 1(2), pages 1-29, December.
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    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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