Our study, Doucouliagos and Paldam (2008), has recently been critically discussed by Mekasha and Tarp (2011). In this paper we show that contrary to what they state, their study validates our basic analysis: Both papers confirm that the literature has shown that aid is of little economic...

The AEL (aid effectiveness literature) studies the effect of development aid using econometrics on macro data. It contains about 100 papers of which a third analyzes conditional models where aid effectiveness depends upon z, so that aid only works for a certain range of the variable. The key...

The AEL (aid effectiveness literature) is econometric studies of the macroeconomic effects of development aid. It contains about 100 papers of which 68 are reduced form estimates of the effect of aid on growth in the recipient country. The raw data show that growth is unconnected to aid, but the...