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The Impact of Aid on Growth Revisited: Do Donor Motives Matter?

  • Kilby, Christopher

    ()

    (Villanova University)

  • Dreher, Axel

    ()

    (Heidelberg University)

The typical identification strategy in aid effectiveness studies assumes donor motives do not influence the impact of aid on growth. We call this homogeneity assumption into question, first constructing a model in which donor motives matter and then testing the assumption empirically.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4156.

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Length: 28 pages
Date of creation: Apr 2009
Date of revision:
Publication status: published in: Economics Letters, 2010, 107 (3), 338-340
Handle: RePEc:iza:izadps:dp4156
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  1. repec:ner:tilbur:urn:nbn:nl:ui:12-3125517 is not listed on IDEAS
  2. Sanjay Reddy & Camelia Minoiu, 2009. "Development Aid and Economic Growth; A Positive Long-Run Relation," IMF Working Papers 09/118, International Monetary Fund.
  3. Hristos Doucouliagos & Martin Paldam, 2005. "The Aid Effectiveness Literature. The Sad Result of 40 Years of Research," Economics Working Papers 2005-15, School of Economics and Management, University of Aarhus.
  4. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
  5. Peter Boone, 1995. "Politics and the Effectiveness of Foreign Aid," CEP Discussion Papers dp0272, Centre for Economic Performance, LSE.
  6. Ilyana Kuziemko & Eric Werker, 2006. "How Much Is a Seat on the Security Council Worth? Foreign Aid and Bribery at the United Nations," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 905-930, October.
  7. Peter Jensen & Martin Paldam, 2006. "Can the two new aid-growth models be replicated?," Public Choice, Springer, vol. 127(1), pages 147-175, April.
  8. Peter Boone, 1995. "Politics and the Effectiveness of Foreign Aid," NBER Working Papers 5308, National Bureau of Economic Research, Inc.
  9. Beck, Thorsten & Clarke, George & Groff, Alberto & Keefer, Philip & Walsh, Patrick, 2000. "New tools and new tests in comparative political economy - the database of political institutions," Policy Research Working Paper Series 2283, The World Bank.
  10. Matteo Bobba & Andrew Powell, 2007. "Aid Effectiveness: Politics Matters," IDB Publications (Working Papers) 6725, Inter-American Development Bank.
  11. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
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