This paper presents an empirical analysis of the relationship between foreign aid inflows and the real exchange rate in 12 countries of the CFA Franc zone. Using dynamic panel analysis we find that foreign aid inflows do not generate Dutch disease effects in these countries. In terms of policy...

This paper looks at interactions between foreign development aid, economic reform and public sector fiscal behaviour. It proposes a model of the public sector fiscal response to aid inflows, which allows for changes in structural relationships due to an exogenously imposed program of economic...

There is a widespread perception among academic researchers and aid practitioners alike that empirical cross-country analysis fails to find any significant link between aid flows and growth, and that aid is successful only when associated with good policies in the recipient countries. These...

This paper examines the relationship between foreign aid and growth in real GDP per capita as it emerges from simple augmentations of popular cross-country growth specifications. It is shown that aid in all likelihood increases the growth rate, and this result is not conditional on "good"...

This paper demonstrates that an empirical link between aid and trade exist (for some donor-recipient pairs), but that the nature of this linkage is complex and can take a variety of forms. By identifying this complexity (and variability) we challenge the assertion, often made in debates...

This paper explores the issue of whether countries with high levels of social capital give more foreign aid than others. It is often argued that in countries with high levels of social capital (as measured, for example, by trust, civic norms and membership of community groups) levels of...