There have been substantial improvements in development outcomes in Afghanistan since 2001, particularly in terms of improved access to basic services such as water, sanitation, and electricity, and increased human development in education and health. However, some gains are now being eroded due...

The available evidence on the effects of aid on growth is notoriously mixed. We use a novel empirical methodology, a heterogeneous panel vector-autoregression model identified through factor analysis, to study the dynamic response of exports, imports, and per capita GDP growth to a global aid...