On the empirics of foreign aid and growth

• 成果类型: Article
• 署名作者: Dalgaard, CJ; Hansen, H; Tarp, F
• 署名单位: University of Copenhagen
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2004.00219.x
• 发表日期: 2004
• 页码: F191-F216
• 关键词: instrument relevance; panel-data; geography; tropics; MODEL

摘要

The present paper re-examines the effectiveness of foreign aid theoretically and empirically. Using a standard OLG model we show that aid inflows will in general affect. long-run productivity. The size and direction of the impact may depend on policies, 'deep' structural characteristics and the size of the inflow. The empirical analysis investigates these possibilities. Overall we find that aid has been effective in spurring growth, but the magnitude of the effect depends on climate-related circumstances. Finally, we argue that the Collier-Dollar allocation rule should be seriously reconsidered by donor agencies if aid effectiveness is related to climate.