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The Aid Effectiveness Literature. The Sad Result of 40 Years of Research

  • Hristos Doucouliagos
  • Martin Paldam

    ()

    (Department of Economics, University of Aarhus, Denmark)

The AEL consists of empirical macro studies of the effects of development aid. At the end of 2004 it had reached 97 studies of three families, which we have summarized in one study each using meta-analysis. Studies of the effect on investments show that they rise by 1/3 of the aid – the rest is crowded out by a fall in savings. Studies of the effect on growth show an insignificant positive effect. Studies of the effect on growth, conditional on something else, have till now shown weak results. The Dutch Disease effect of aid has been ignored. The best aggregate estimate is that since its start in the early 1960s aid has increased the standard of living in the poor countries by 20%.

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File URL: ftp://ftp.econ.au.dk/afn/wp/05/wp05_15.pdf
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Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2005-15.

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Length: 26
Date of creation: 21 Jul 2005
Date of revision:
Handle: RePEc:aah:aarhec:2005-15
Contact details of provider: Web page: http://www.econ.au.dk/afn/

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  1. Hristos Doucouliagos & Martin Paldam, 2005. "Aid Effectiveness on Growth. A Meta Study," Economics Working Papers 2005-13, School of Economics and Management, University of Aarhus.
  2. Haldrup, Niels & Hylleberg, Svend & Pons, Gabriel & Sanso, Andreu, 2007. "Common Periodic Correlation Features and the Interaction of Stocks and Flows in Daily Airport Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 25, pages 21-32, January.
  3. Francesco Busato & Bruno Chiarini & Enrico Marchetti, 2005. "Fiscal Policy under Indeterminacy and Tax Evasion," Economics Working Papers 2005-09, School of Economics and Management, University of Aarhus.
  4. Weisskopf, Thomas E, 1972. "An Econometric Test of Alternative Constraints on the Growth of Underdeveloped Countries," The Review of Economics and Statistics, MIT Press, vol. 54(1), pages 67-78, February.
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  1. Meta-Analysis in Economics

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