Using survey data on Bulgarian and Macedonian firms that participated in USAID programs providing technical and financial assistance for small and medium-sized enterprises (SMEs) and on firms that did not, we estimate the effectiveness of such assistance in increasing the growth of employment in...

Political misalignment and greater ideological distance between donor and recipient governments may render foreign aid less effective by adding to transaction costs and eroding trust. In addition, development aid from the West may lead to adverse growth effects in the global South due to the...

The implications of foreign aid on economic growth and employment have been subjected to intense debate, with most studies focused on aggregated aid. However, different types of aid will probably affect growth and employment differently. Therefore, aggregating aid flows are most likely to...