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The robust result in meta-analysis of aid effectiveness: a response to Mekasha and Tarp

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  • Doucouliagos, Hristos
  • Paldam, Martin

Abstract

Our study, Doucouliagos and Paldam (2008), has recently been critically discussed by Mekasha and Tarp (2011). In this paper we show that contrary to what they state, their study validates our basic analysis: Both papers confirm that the literature has shown that aid is of little economic importance in generating growth. M&T find some random coding errors with virtually no effect on the basic results. Furthermore, we discuss some methodological disagreements and show that their choice of the random effects model is not appropriate for the problem at hand, and that the way they use multiple MRAs contradicts the robust results reached at the basic analysis.
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Suggested Citation

  • Doucouliagos, Hristos & Paldam, Martin, 2012. "The robust result in meta-analysis of aid effectiveness: a response to Mekasha and Tarp," Working Papers eco_2012_4, Deakin University, Department of Economics.
  • Handle: RePEc:dkn:econwp:eco_2012_4
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    File URL: http://dx.doi.org/10.1080/00220388.2013.764595
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Paldam, Martin, 2015. "Meta-analysis in a nutshell: Techniques and general findings," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 9, pages 1-14.
    2. Reed, W. Robert, 2015. "A Monte Carlo analysis of alternative meta-analysis estimators in the presence of publication bias," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 9, pages 1-40.
    3. Nazila Alinaghi & W. Robert Reed, 2016. "Meta-Analysis and Publication Bias: How Well Does the FAT-PET-PEESE Procedure Work?," Working Papers in Economics 16/26, University of Canterbury, Department of Economics and Finance.
    4. Juergen Bitzer & Erkan Goeren, 2018. "Foreign Aid and Subnational Development: A Grid Cell Analysis," Working Papers V-407-18, University of Oldenburg, Department of Economics, revised Mar 2018.
    5. repec:wly:econjl:v::y:2017:i:605:p:f236-f265 is not listed on IDEAS
    6. Martin Paldam, 2013. "Regression Costs Fall, Mining Ratios Rise, Publication Bias Looms, and Techniques Get Fancier: Reflections on Some Trends in Empirical Macroeconomics," Econ Journal Watch, Econ Journal Watch, vol. 10(2), pages 136-156, May.
    7. Felicitas Nowak-Lehmann D. & Elena Gross, 2015. "What effect does development aid have on productivity in recipient countries? An analysis using quantiles and thresholds," Ibero America Institute for Econ. Research (IAI) Discussion Papers 232, Ibero-America Institute for Economic Research.
    8. Gunby, Philip & Jin, Yinghua & Robert Reed, W., 2017. "Did FDI Really Cause Chinese Economic Growth? A Meta-Analysis," World Development, Elsevier, vol. 90(C), pages 242-255.
    9. Jianhua Duan & Kuntal K. Das & Laura Meriluoto & W. Robert Reed, 2019. "Spillovers and Exports: A Meta-Analysis," Working Papers in Economics 19/03, University of Canterbury, Department of Economics and Finance.
    10. Parlow, Anton, 2018. "Women's Empowerment, Gendered Institutions and Economic Opportunity: An Investigative Study for Pakistan," MPRA Paper 93916, University Library of Munich, Germany.
    11. Parlow, Anton, 2018. "Women's Empowerment, Gendered Institutions and Economic Opportunity: An Investigative Study for Pakistan," MPRA Paper 86367, University Library of Munich, Germany.
    12. Parlow, Anton, 2018. "Women's Empowerment, Gendered Institutions and Economic Opportunity: An Investigative Study for Pakistan," MPRA Paper 86331, University Library of Munich, Germany.
    13. Stefan Leiderer, 2015. "Donor Coordination for Effective Government Policies?," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(8), pages 1422-1445, November.
    14. repec:gam:jsusta:v:10:y:2018:i:12:p:4655-:d:188608 is not listed on IDEAS
    15. Xindong Xue & W. Robert Reed, 2019. "Social Capital and Health: A Meta-Analysis," Working Papers in Economics 19/01, University of Canterbury, Department of Economics and Finance.
    16. Felicitas Nowak-Lehmann D. & Inmaculada Martínez-Zarzoso & Stephan Klasen, 2014. "The aid-income link revisited. How plausible and robust are the results?," Ibero America Institute for Econ. Research (IAI) Discussion Papers 230, Ibero-America Institute for Economic Research.
    17. repec:wly:econjl:v:127:y:2017:i:605:p:f236-f265 is not listed on IDEAS
    18. Herzer, Dierk & Nowak-Lehmann, Felicitas & Dreher, Axel & Klasen, Stephan & Martinez-Zarzoso, Inmaculada, 2015. "Comment on Lof, Mekasha, and Tarp (2014)," World Development, Elsevier, vol. 70(C), pages 389-396.
    19. Briggs, Ryan C., 2014. "Aiding and Abetting: Project Aid and Ethnic Politics in Kenya," World Development, Elsevier, vol. 64(C), pages 194-205.

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    JEL classification:

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

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