We consider the relationship between external aid and development in Mozambique from 1980–2004, identifying the specific mechanisms through which aid has influenced the developmental trajectory of the country. We undertake both a growth accounting analysis and review the intended and...

Allocation is here understood as allocation among countries, while it is sometime taken as allocation between projects or operations. Intercountry allocation is an essential issue for concessional resources that are scarce. This note presents few remarks on the allocation of concessional...

The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature doubts the ability of foreign aid to foster economic growth and development. This paper assesses the aid-growth literature and, taking inspiration from the program...

Projections show that climate finance has the potential to markedly increase total official assistance to developing countries over the next decade. Climate change will impact not only the need for foreign assistance, but also the financial mechanisms, modalities, agreements, and distribution...

Controversy over the aggregate impact of foreign aid has focused on reduced form estimates of the aid-growth link. The causal chain, through which aid affects developmental outcomes including growth, has received much less attention. We address this gap by: (i) specifying a structural model of...

The emergence of climate finance has the potential to catalyze positive changes in the institutional architecture and distribution mechanisms for financial flows to lower income countries. The nature of the challenge of development in the context of climate change argues for recipient country...

The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature has turned decidedly pessimistic with respect to the ability of foreign aid to foster economic growth. Policy implications, such as the complete cessation of aid to...

This paper confirms recent evidence of a positive impact of aid on growth and widens the scope of evaluation to a range of outcomes including proximate sources of growth (e.g., physical and human capital), indicators of social welfare (e.g., poverty and infant mortality), and measures of...