The objective of this paper is to survey what is actually known about the finance-growth relationship based on theory and empirical work. We point out that traditional theoretical models linking financial development and economic growth do not pay sufficient attention to insights emerging from...

It is clear that a lot remains to be learnt about the role of the financial sector in African growth and development process. All three papers in this volume focus on the existing consensus in the literature that there seems to be a positive relationship between financial development and...

Foreign aid has undergone many fundamental shifts since the middle of the last century. During the 1960s and 1970s, the international development community added a multilateral agenda of development goals, institutions, and procedures to traditional bilateralism. Thinking about development...

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...