In this paper, foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent … this framework, the growth impact of aid is examined jointly with the determination of rent-seeking behavior. We test the … that aid has a direct positive effect on growth, which is however significantly mitigated by the adverse indirect effects …

growth-environment-policy link. The context is a dynamic general equilibrium model of endogenous growth, in which private … observed persistent differences in growth among LDCs with similar fundamentals and endowments. …