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

Arbeitspapier

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.

Object Details

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

References and Relationships

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

Classification and Topics

• 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

Contributors, Places and Time

• 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

Further information

• Handle: http://hdl.handle.net/10419/54076
• Last update: 10.03.2025, 11:44 AM CET