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Effective Foreign Aid, Economic Integration and Subsidiarity: Lessons from Europe

  • Abdur Chowdhury


    (United Nations Economic Commission for Europe)

  • Paolo Garonna


    (United Nations Economic Commission for Europe)

This paper argues that the most important question regarding the efficacy of development assistance is not how much but rather for what. Economic integration and subsidiarity provides the conditions necessary for ODA to produce higher rates of economic growth on a sustained basis.

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Paper provided by UNECE in its series ECE Discussion Papers Series with number 2007_2.

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Length: 24 pages
Date of creation: Jun 2007
Date of revision:
Publication status: Published in UNECE Discussion Paper Series, No. 2007_2
Handle: RePEc:ece:dispap:2007_2
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  1. Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398.
  2. Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting chickens when they hatch: The short-term effect of aid on growth," International Finance 0407010, EconWPA.
  3. Lensink, Robert & White, Howard, 1999. "Are there negative returns to aid?," Research Report 99E60, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  4. Dalgaard, Carl-Johan & Hansen, Henrik & Tarp, Finn, 2002. "On the Empirics of Foreign Aid and Growth," MPRA Paper 63696, University Library of Munich, Germany.
  5. Raghuram G. Rajan & Arvind Subramanian, 2005. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," NBER Working Papers 11513, National Bureau of Economic Research, Inc.
  6. C-J. Dalgaard & H. Hansen, 2001. "On Aid, Growth and Good Policies," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 17-41.
  7. Burnside, Craig & Dollar, David, 1997. "Aid, policies, and growth," Policy Research Working Paper Series 1777, The World Bank.
  8. Levy, Victor, 1988. "Aid and growth in Sub-Saharan Africa: The recent experience," European Economic Review, Elsevier, vol. 32(9), pages 1777-1795, November.
  9. Isham, Jonathan & Kaufmann, Daniel & Pritchett, Lant, 1995. "Governance and returns on investment : an empirical investigation," Policy Research Working Paper Series 1550, The World Bank.
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