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...

This paper re-examines the causal impact of military expenditure on growth in the presence of internal and external threats for the period 1990-2013 using data from 70 developing countries. We find that differences in methods, model specifications, and the underlying estimation sample partly...

There has been a recent resurgence of interest in the relationships between income inequality and growth, trade policy and growth, and growth and poverty. We contribute to this literature by exploring the relationships between inequality, trade liberalisation, growth and poverty in a sample of...

Foreign aid inflows have grown significantly in the post-war period. Many studies have tried to assess the effectiveness of aid at the micro- and macro-level. While micro-evaluations have found that in most cases aid "works", those at the macro-level are ambiguous. This paper assesses the impact...

The linkages between trade and resource mobilization are complex and not well defined in theory. To what extent does trade policy affect resource mobilization and what are the mechanisms? A critical issue in this respect is that trade policy affects the current account imbalance without...

This paper contributes to the literature on aid and economic growth. We posit that it is not the level of aid flows per se but the stability of such flows that determines the impact of aid on economic growth. Three measures of aid instability are employed. One is a simple deviation from trend,...

This paper contributes to the literature on FDI and economic growth. We deviate from previous studies by introducing measures of the volatility of FDI inflows. As introduced into the model, these are predicted to have a negative effect on growth. We estimate the standard model using...

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...