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This paper adds to aid volatility literature in three ways: First it tests the validity of the aid volatility and … growth relationship from various aspects: across different time horizons, by sources of aid, and by aid volatility …. Third, when examining the relationship between International Development Association aid volatility and growth, it isolates …
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macroeconomic volatility prevents countries with a higher incidence of poverty from converging in poverty levels to those with less … poverty on a global scale. Once volatility is controlled for, the relevant convergence parameter shows the expected negative … sign and is robust to various estimation techniques and model specifications. Only if a country's volatility exceeds a …
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