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Aid Effectiveness Disputed

Listed author(s):
  • Hansen, Henrik
  • Tarp, Finn

There is a widespread perception among academic researchers and aid practitioners alike that empirical cross-country analysis fails to find any significant link between aid flows and growth, and that aid is successful only when associated with good policies in the recipient countries. These positions do not stand up to careful scrutiny of existing studies. In this paper, we offer a re-examination of the literature on the aid-savings, aid-investment, and aid growth relationships, and a comparative appraisal of more recent research contributions. Using an analytic framework for evaluating the empirical work, a coherent and positive picture of the aid-growth link emerges. Aid works, even in countries hampered by an unfavorable policy environment.

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File URL: https://mpra.ub.uni-muenchen.de/62290/1/MPRA_paper_62290.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 62290.

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Date of creation: 1999
Handle: RePEc:pra:mprapa:62290
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