This paper makes two main contributions. First, we examine the long-run effect of foreign aid on domestic output for 59 developing countries using heterogeneous panel cointegration techniques to control for omitted variable and endogeneity bias to detect possible cross-country differences in the...

This paper focuses on the macroeconomic management of large inflows of foreign aid. It investigates the extent to which African countries have coordinated fiscal and macroeconomic responses to aid surges. In practice, we construct a panel dataset to investigate the level of aid 'absorption' and...

Focusing on seven bilateral donors over a 25 year period, the paper answers 4 questions related to aid allocation practice. Questions one and two examine allocation differences between donors and time periods. Questions three and four relate to changes in poverty and policy selectivity. To...

We assemble more pieces on the puzzle of the aid-corruption nexus. In essence, we extend the debate on the effect of foreign aid on corruption by providing evidence on dynamic effects of wealth, legal origin, religious-domination, regional proximity, openness to sea, natural resources and...

Purpose - This paper investigates the effect of foreign aid on governance in order to extend the debates on foreign aid and to verify common positions from Moyo's 'Dead Aid', Collier's 'Bottom Billion' and Eubank's 'Somaliland'. The empirical evidence is based on updated data from 52 African...

The study clarifies the questionable economics of foreign aid for inclusive human development. It investigates the effect of a plethora of foreign aid dynamics on the inequality adjusted human development index. Contemporary and non-contemporary OLS, Fixed-effects and a system GMM technique with...

This note reconciles an on-going debate on the effect of foreign aid on corruption by introducing a previously missing heterogeneity dimension of aid. The relationship was estimated using dynamic system GMM and quantile regressions (QR). Results show that both narratives in the debate are...

This paper assesses the aid-development nexus in 52 African countries using updated data (1996-2010) and a new indicator of human development (adjusted for inequality). The effects of Total Net Official Development Assistance (NODA), NODA from the Development Assistance Committee (DAC) and NODA...

We extend the Okada & Samreth (2012, EL) and Asongu (2012, EB) debate on 'the effect of foreign aid on corruption' by: not partially negating the former's methodological underpinning (as in the latter's approach) with a unifying empirical framework and; broadening the horizon of inquiry from...