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Can Foreign Aid Buy Growth?

Open access
Easterly, William·2003·Journal of Economic Perspectives

Abstract

The widely publicized finding that “aid promotes growth in a good policy environment” is not robust to the inclusion of new data or alternative definitions of “aid,” “policy” or “growth.” The idea that “aid buys growth” is on shaky ground theoretically and empirically. It doesn’t help that aid agencies face poor incentives to deliver results and underinvest in enforcing aid conditions and performing scientific evaluations. Aid should set more modest goals, like helping some of the people some of the time, rather than trying to be the catalyst for societywide transformation.

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Metadata

Authors
Easterly, W.
Venue
Journal of Economic Perspectives
Published
2003-08-01
Volume
17
Issue
3
Pages
23-48
ISSN
0895-3309 (ISSN-L)
OpenAlex
W2106639360
Cited by
1,152
References
4
FWCI
182.88
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Can Foreign Aid Buy Growth? https://app.cochat.ai/papers/10.1257/089533003769204344
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Easterly, W. (2003). Can Foreign Aid Buy Growth? Journal of Economic Perspectives. https://doi.org/10.1257/089533003769204344

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