The Commitment to Development Index (CDI) aims to assess rich countries' policies that affect sustainable development perspectives of poor countries and to rank rich countries from this perspective. The index consists of seven components and one of them - foreign aid - is explored in this paper....

Foreign aid is given for many purposes and different intentions, yet most studies treat aid flows as a unitary concept. This paper uses factor analysis to separate aid flows into different types. The main types can be interpreted as aid for economic purposes, social purposes, and reconstruction;...

Among all the island countries of the world, Vanuatu, a small island nation in the South Pacific with a population of 220,000 was once ranked as the most vulnerable economy on the basis of having the least resilience to withstand the adverse impacts of external and internal shocks. Vanuatu is...

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 a panel of up to 116 countries from 1970 to 2010 we estimate the effects of foreign aid flows on a variety of measures of institutional quality. We find that aid flows are associated with the deterioration of both political and economic institutions. Regarding the latter, aid flows are...

In multiple regressions, explanatory variables with simple correlation coefficients with the dependent variable below 0.1 in absolute value (such as aid/gross domestic product (GDP) with GDP growth) face a problem of parameter identification. They may have very large, statistically significant,...

This paper uses a panel approach and annual observations of over 150 countries for the period 1975 – 2000 to examine the impact of foreign aid and trade on income. The paper addresses the simultaneity of international trade, foreign aid and economic performance by using a full information...

This paper discusses key findings of the Sixth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF) for Tanzania. Economic growth, inflation, and the external position have evolved in a manner consistent with program objectives, and the program has...

The Federal Democratic Republic of Ethiopia’s 2005 Article IV Consultation reports that domestic credit growth has accelerated, driven by strong demand from the government, public enterprises, and the private sector. High import content, particularly from public infrastructure...