Arbeitspapier

Aid, growth, and development: Have we come full circle?

The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature doubts the ability of foreign aid to foster economic growth and development. This paper assesses the aid-growth literature and, taking inspiration from the program evaluation literature, we re-examine key hypotheses. In our findings, aid has a positive and statistically significant causal effect on growth over the long run, with confidence intervals conforming to levels suggested by growth theory. Aid remains a key tool for enhancing the development prospects of poor countries.

ISBN
978-92-9230-334-1
Language
Englisch

Bibliographic citation
Series: WIDER Working Paper ; No. 2010/96

Classification
Wirtschaft
Foreign Aid
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Subject
foreign aid
growth
aid effectiveness
causal effects

Event
Geistige Schöpfung
(who)
Arndt, Channing
Jones, Sam
Tarp, Finn
Event
Veröffentlichung
(who)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(where)
Helsinki
(when)
2010

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Arndt, Channing
  • Jones, Sam
  • Tarp, Finn
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Time of origin

  • 2010

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