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La ayuda al desarrollo: ¿reduce la pobreza?
[Foreign Aid: reduce poverty? (in Spanish)]

  • Larru, Jose Maria

Recent studies and approaches to foreign aid effectiveness have concentrated on its impact on economic growth. But aid’s main goal is poverty reduction, not economic growth. In this paper, aid’s impact on poverty, growth, and inequality are analyzed. A 97 country sample is used for the 1981-2001 time period. Both, panel data and cross-section econometric techniques, are used. The main finding is that economic growth reduces poverty, but also aid, although less than growth, and not under linearity assumptions. Data limitations and econometric assumptions lead to the recommendation of adding impact evaluations and country-case studies to “classic” aggregate approaches and methodologies, before coming to false conclusions and empirical evidence of foreign aid’s effect on poverty.

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File URL: http://mpra.ub.uni-muenchen.de/2341/1/MPRA_paper_2341.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2341.

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Date of creation: 2006
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Handle: RePEc:pra:mprapa:2341
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  8. Esther Duflo, 2000. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," NBER Working Papers 7860, National Bureau of Economic Research, Inc.
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  19. William Easterly, 2003. "Can Foreign Aid Buy Growth?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 23-48, Summer.
  20. Tony Addison & George Mavrotas & Mark McGillivray, 2005. "Development assistance and development finance: evidence and global policy agendas," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(6), pages 819-836.
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