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On Aid, Growth and Good Policies
Open accessAbstract
This study provides a critical analysis of the growth regressions in Burnside and Dollar [2000]. First, we analyse the relationship between aid and government expenditure in a modified neo-classical growth model. One of the main results of the analysis is that while good policies spur growths they may at the same time reduce the effectiveness of foreign aid. Second, we show that the econometric results in Burnside and Dollar emphasising the crucial role of interaction between aid and good policies in the growth process are fragile, as they are extremely data dependent. Finally, we demonstrate that the Burnside and Dollar data lend support to the idea that the association between aid and growth can be approximated by decreasing returns to aid. This finding conforms well to regression results in other recent studies.
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Cites
Economic Reform and the Process of Global Integration
Sachs, J. D., Warner, A., Aslund, A., & Fischer, S. (1995) · Brookings Papers on Economic Activity · doi:10.2307/2534573 · Cited by 4,950
The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988
Summers, R., & Heston, A. (1991) · The Quarterly Journal of Economics · doi:10.2307/2937941 · Cited by 3,429
Cited by
The Anarchy of Numbers: Aid, Development, and Cross-Country Empirics
Roodman, D. (2007) · The World Bank Economic Review · doi:10.1093/wber/lhm004 · Cited by 578
The Increasing Selectivity of Foreign Aid, 1984–2003
Dollar, D., & Levin, V. (2006) · World Development · doi:10.1016/j.worlddev.2006.06.002 · Cited by 512
Deaton, A. (2009) · National Bureau of Economic Research · doi:10.3386/w14690 · Cited by 454
Aid, Governance and Private Foreign Investment: Some Puzzling Findings for the 1990s
Harms, P., & Lutz, M. (2006) · The Economic Journal · doi:10.1111/j.1468-0297.2006.01111.x · Cited by 152
Court, J., & Maxwell, S. (2005) · Journal of International Development · doi:10.1002/jid.1234 · Cited by 54
Metadata
- Authors
- Dalgaard, C.-J., & Hansen, H.
- Venue
- Journal of Development Studies
- Publisher
- Informa UK Limited
- Published
- 2001-08
- Volume
- 37
- Issue
- 6
- Pages
- 17-41
- ISSN
- 0022-0388 (ISSN-L)
- 1743-9140
- OpenAlex
- W2083998567
- Cited by
- 535
- References
- 2
- FWCI
- 75.46
- Type
- journal article
- Language
- en
- Open access
- bronze
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
