Foreign aid has undergone many fundamental shifts since the middle of the last century. During the 1960s and 1970s, the international development community added a multilateral agenda of development goals, institutions, and procedures to traditional bilateralism. Thinking about development...

Controversy over the aggregate impact of foreign aid has focused on reduced form estimates of the aid-growth link. The causal chain, through which aid affects developmental outcomes including growth, has received much less attention. We address this gap by: (i) specifying a structural model of...

This paper confirms recent evidence of a positive impact of aid on growth and widens the scope of evaluation to a range of outcomes including proximate sources of growth (e.g., physical and human capital), indicators of social welfare (e.g., poverty and infant mortality), and measures of...