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Aid effectiveness disputed

✍ Scribed by Henrik Hansen; Finn Tarp

Publisher
John Wiley and Sons
Year
2000
Tongue
English
Weight
197 KB
Volume
12
Category
Article
ISSN
0954-1748

No coin nor oath required. For personal study only.

✦ Synopsis

There is a widespread perception among academic researchers and aid practitioners alike that empirical cross-country analysis fails to ®nd any signi®cant link between aid ¯ows 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 oer 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. There is a robust aid±growth link even in countries hampered by an unfavourable policy environment.

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