Donor aid is often regarded as being informally tied (aid increases donorrecipient exports) and this effect is, in general, interpreted as being harmful to aid recipients. However, in this paper, using a gravity model, we show that aid is also positively associated with recipient-donor exports....

Donor aid is often regarded as being informally tied (aid increases donorrecipient exports) and this effect is, in general, interpreted as being harmful to aid recipients. However, in this paper, using a gravity model, we show that aid is also positively associated with recipient-donor exports....

In this paper, we argue that the sizeable reduction in aggregate aid levels in the 1990's was due to the end of the Cold war. We use a dynamic econometric specification to test this hypothesis on a panel of 17 donor countries, spanning the years 1970-1997. We find aid to be positively related to...