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...

The link between foreign aid and economic growth remains a controversial issue in the literature, and a large share of the disagreement could be explained by differences in the data employed. Using GDP data from three different versions of the Penn World Table and the World Development...

Economic sanctions, and the suspension of budget support in particular, are supposed to pressure target governments to comply with donors' demands by putting spending commitments at risk. We argue that this is too simplistic since governments have more fiscal levers at their disposal. The case...