We examine the interaction between foreign aid and binding borrowing constraint for a recipient country. We also analyze how these two instruments affect economic growth via non-linear relationships. First of all, we develop a two-country, two-period trade-theoretic model to develop testable...

Aid programs in developing countries are likely to affect all households living in the treated areas, both eligible and non-eligible ones. Studies that focus on the treatment effect on the treated may fail to capture important spillover effects. We exploit the unique design of an aid program's...

Amid the polycrises of Covid-19, the conflict in Ukraine and the intensification of geopolitical tensions, mid-size European donors face pressures to leverage development cooperation to secure their foreign policy goals. These donors now deploy a diverse toolbox of development levers to...