We test the hypothesis that the effect of foreign aid on economic growth is positive in ethnically homogenous countries, but decreasing in ethnic fractionalization. Using panel data covering 114 aid recipient countries over the period 1962 to 2001, and employing two-stage least squares and GMM...

Using the Seemingly Unrelated Regression Estimation (SURE) technique, we examine the implications of four different types of foreign capital inflows, namely; Foreign Direct Investment (FDI), Official Development Assistance (ODA), Foreign Private Investment (FPI) and Remittances (REM) on output...

The issue of foreign aid dependency in African countries remains controversial among policy makers. So far, there is no consensus on aid effectiveness and the resulting policy prescriptions have been conflicting. The Euro zone which provides the bulk of foreign aid to developing countries, is...

Using panel data for the period of 1975-2011, this study attempts to answer the question of whether the quantity or quality of foreign aid matters to economic growth of least developed countries (LDCs). Quality effects are captured using different specifications of both bilateral and...

One branch of the literature on aid effectiveness attempts to measure the contribution of foreign aid to the growth of developing countries. The micro results are clear and encouraging: foreign aid is beneficial to economic growth. However, until recently, the macro results were inconclusive:...

This paper analyses the impact of foreign health aid on the emigration rates of physicians. We use a panel database to investigate the emigration of physicians from 192 source countries to 17 destination countries between 1995 and 2004. First, we investigate the direct impact of health...

In this paper we investigate the relationship between per capita income and foreign aid for a panel of 131 (alternatively 52) recipient countries over the period 1960 to 2006 by employing annual data and 5-year averages. Reliance on standard panel estimation techniques, such as 2-ways FE...

This paper analyse the impact of health foreign assistance on physicians' brain drain. We use the database from Bhargava and Docquier (2008) to explain physicians' brain drain and health foreign assistance from 1995 to 2003 using a bilateral gravity equation model. In the first time, we propose...

To study whether foreign aid fuels personal, regional and ethnic favoritism, we use satellite data on nighttime light for any region in any aid-recipient country, and we determine for each year and each country the region in which the current political leader was born. Having a panel with 22,850...

We model the aid allocation decision where the donor government has announced that good governance is the criterion for receiving aid. Potential recipients must compete for the aid funds. The structure of the competition is important to the donor in terms of achieving good governance, and to the...