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Aid Effectiveness: A Survey of the Recent Empirical Literature

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  • Mr. Tsidi M Tsikata

Abstract

The preponderance of evidence from the empirical literature on aid effectiveness suggests that development aid has not had a significant impact on growth in recipient countries. However, there is some evidence that aid has had positive effects when the policy environment has been conducive to growth. Regarding the relationship between aid and the main channels through which its impact on growth could flow—investment and domestic saving—the evidence is mixed, with some indication that aid has had a positive impact where adjustment efforts have been sustained.

Suggested Citation

  • Mr. Tsidi M Tsikata, 1998. "Aid Effectiveness: A Survey of the Recent Empirical Literature," IMF Policy Discussion Papers 1998/001, International Monetary Fund.
    • Handle: RePEc:imf:imfpdp:1998/001
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    Citations

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    Cited by:

    1. Didier Yelognisse Alia & Romuald E. Kouadio Anago, 2014. "Foreign Aid Effectiveness in African Economies: Evidence from a Panel Threshold Framework," WIDER Working Paper Series wp-2014-015, World Institute for Development Economic Research (UNU-WIDER).
    2. Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398, April.
    3. Paul Mosley & Farhad Noorbakhsh & Alberto Paloni, "undated". "The importance of a better design of conditionality for improving implementation of World Bank-supported reforms: The case of Sub-Saharan African countries," Working Papers 2004_6, Business School - Economics, University of Glasgow.
    4. Isabel Neira Gómez & María Cadaval Sampedro & Marta Portela, 2010. "Ayuda al desarrollo, capital humano, capital social y crecimiento: una visión de la situación en Latinoamérica," Investigaciones de Economía de la Educación volume 5, in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Gregorio Gim (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 53, pages 1044-1060, Asociación de Economía de la Educación.
    5. Binata Rani Sen & Tania Islam & Aminun Nahar & Md. Farid Dewan, 2019. "The Impact of Foreign Aid in Economic Growth: An Econometric Analysis of Bangladesh," International Journal of Science and Business, IJSAB International, vol. 3(2), pages 138-145.
    6. Mr. Robert Powell, 2003. "Debt Relief, Additionality, and Aid Allocation in Low Income Countries," IMF Working Papers 2003/175, International Monetary Fund.
    7. Andras Margitay-Becht, 2005. "Agent Based Modelling of Aid," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 3(2), pages 84-93.
    8. Channing Arndt & Sam Jones & Finn Tarp, 2009. "Aid and Growth: Have We Come Full Circle?," Discussion Papers 09-22, University of Copenhagen. Department of Economics.
    9. Boriana Yontcheva & Mrs. Nadia Masud, 2005. "Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and Bilateral Aid," IMF Working Papers 2005/100, International Monetary Fund.
    10. Vincenzo Bove & Leandro Elia, 2018. "Economic Development in Peacekeeping Host Countries," CESifo Economic Studies, CESifo, vol. 64(4), pages 712-728.
    11. Lisandro Abrego & Doris C. Ross, 2002. "Debt Relief under the HIPC Initiative: Context and Outlook for Debt Sustainability and Resource Flows," WIDER Working Paper Series DP2002-44, World Institute for Development Economic Research (UNU-WIDER).

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