This review assesses the performance of Iceland, including looking at how Iceland works in its three partner countries and on key priority issues such as gender, health, education and renewable energy. Iceland joined the Development Assistance Committee in 2013. This is its first peer review.

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...