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Finally a breakthrough? The recent rise in the size of the estimates of aid effectiveness

Author

Listed:
  • Hristos Doucouliagos

    (Deakin University, Austratlia)

  • Martin Paldam

    () (Department of Economics and Business, Aarhus University, Denmark)

Abstract

The authors have previously surveyed the AEL, aid (empirical) effectiveness literature, using the technique of meta-analysis. We reached the result that the small positive effect of aid on growth found in the average study is mostly a publication selection bias. This present study concentrates on the new literature from 2007 onward which is divided into: Period (A) 2007-08: where the AEL showed aid ineffectiveness. Period (B) 2009-12: where the results are better. Three hypotheses may explain the upward kink in the results: (i) Aid effectiveness has increased. (ii) A breakthrough has occurred in the models and estimators. (iii) The improvement is an artifact. Unfortunately the data support the third hypothesis only.

Suggested Citation

  • Hristos Doucouliagos & Martin Paldam, 2014. "Finally a breakthrough? The recent rise in the size of the estimates of aid effectiveness," Economics Working Papers 2014-07, Department of Economics and Business Economics, Aarhus University.
  • Handle: RePEc:aah:aarhec:2014-07
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    File URL: ftp://ftp.econ.au.dk/afn/wp/14/wp14_07.pdf
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    References listed on IDEAS

    as
    1. T.D. Stanley & Hristos Doucouliagos, 2010. "Picture This: A Simple Graph That Reveals Much Ado About Research," Journal of Economic Surveys, Wiley Blackwell, vol. 24(1), pages 170-191, February.
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    More about this item

    Keywords

    Aid effectiveness; meta-analysis;

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • F35 - International Economics - - International Finance - - - Foreign Aid

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