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Aid Effectiveness; A Survey of the Recent Empirical Literature

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  • 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

  • Tsidi M Tsikata, 1998. "Aid Effectiveness; A Survey of the Recent Empirical Literature," IMF Policy Discussion Papers 98/1, International Monetary Fund.
  • Handle: RePEc:imf:imfpdp:98/1
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    Cited by:

    1. Robert Powell, 2003. "Debt Relief, Additionality, and Aid Allocation in Low Income Countries," IMF Working Papers 03/175, International Monetary Fund.
    2. Boriana Yontcheva & Nadia Masud, 2005. "Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and Bilateral Aid," IMF Working Papers 05/100, International Monetary Fund.

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