Herbertsson, Tryggvi Thor; Paldam, Martin - School of Economics and Management, University of Aarhus - 2005
Aid flows are included into the standard cross-country catch-up relation. Robust¬ness of the result is tested by changing time periods and by adding extra variables. The main results are: Absolute conver¬gence and absolute aid effec¬ti¬ve¬ness are both rejected. While conditional...