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

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Abstract

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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  • Christopher Kilby & Axel Dreher, 2009. "The Impact of Aid on Growth Revisited: Do Donor Motives Matter?," Villanova School of Business Department of Economics and Statistics Working Paper Series 5, Villanova School of Business Department of Economics and Statistics.
    • Handle: RePEc:vil:papers:5
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    File URL: http://repec.library.villanova.edu/workingpapers/VSBEcon5.pdf
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    Keywords

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    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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