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Aid, Policies, and Growth
Abstract
This paper uses a new database on foreign aid to examine the relationships among foreign aid, economic policies, and growth of per capita GDP. We find that aid has a positive impact on growth in developing countries with good fiscal, monetary, and trade policies but has little effect in the presence of poor policies. Good policies are ones that are themselves important for growth. The quality of policy has only a small impact on the allocation of aid. Our results suggest that aid would be more effective if it were more systematically conditioned on good policy. (JEL F350, O230, O400)
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Cites
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Cited by
Blunt Instruments: Avoiding Common Pitfalls in Identifying the Causes of Economic Growth
Bazzi, S., & Clemens, M. A. (2013) · American Economic Journal: Macroeconomics · doi:10.1257/mac.5.2.152 · Cited by 640
Economic Growth, Civil Wars, and Spatial Spillovers
MURDOCH, J. C., & SANDLER, T. (2002) · Journal of Conflict Resolution · doi:10.1177/0022002702046001006 · Cited by 534
Collier, P., & Dollar, D. (2001) · World Development · doi:10.1016/s0305-750x(01)00076-6 · Cited by 523
Self-citationHow Foreign Aid Can Foster Democratization in Authoritarian Regimes
Wright, J. (2009) · American Journal of Political Science · doi:10.1111/j.1540-5907.2009.00386.x · Cited by 372
Civil Wars and Economic Growth: Spatial Dispersion
Murdoch, J. C., & Sandler, T. (2004) · American Journal of Political Science · doi:10.1111/j.0092-5853.2004.00061.x · Cited by 353
Metadata
- Authors
- Burnside, C., & Dollar, D.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2000-09-01
- Volume
- 90
- Issue
- 4
- Pages
- 847-868
- ISSN
- 0002-8282
- OpenAlex
- W3125364203
- Cited by
- 3,728
- References
- 2
- Type
- journal article
- Language
- en
- Open access
- closed
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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.