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The traditional aid-to-investment-to growth linkages are not very robust, especially for African economies. Aid does not necessarily finance investment and investment does not necessarily promote growth. Differences in economic policy, on the other hand, can explain much of the difference in...
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, and money.Dollar and Easterly's study of aid, investment, and policies in Africa leads them to four principal conclusions … Africa's poor record.deg; Foreign aid cannot easily promote lasting policy reform in countries where there is no strong … investment, good policies, and foreign aid is quite powerful.Where do we stand in the search for the key to growth in Africa …
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Burnside and Dollar revisit the relationship between aid and growth using a new data set focusing on the 1990s. The evidence supports the view that the impact of aid depends on the quality of state institutions and policies. The authors use an overall measure of institutions and policies popular...
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