This paper makes two main contributions. First, we examine the long-run effect of foreign aid on domestic output for 59 developing countries using heterogeneous panel cointegration techniques to control for omitted variable and endogeneity bias to detect possible cross-country differences in the...

This is the fifth Annual Review of Development Effectiveness (ARDE). This year's Review highlights the choice of lending and non-lending instruments and activities to achieve development objectives. It complements the Annual Report on Portfolio Performance, the Quality Assurance Group's...