We explore whether foreign aid affects developing countries' creditworthiness, as proxied by the Institutional Investor … current aid reduces the likelihood of future default. We then test this hypothesis, using a data set that covers a large … number of developing countries in the 1980s and 1990s. While the size of the effect differs across types of aid and country …

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting … marginal effect of aid on private foreign investment is close to zero. Surprisingly, however, the effect is strictly positive …

The available evidence on the effects of aid on growth is notoriously mixed. We use a novel empirical methodology, a …, imports, and per capita GDP growth to a global aid shock (the common component of individual country aid-to-GDP ratios). We … find that the estimated cumulative resposive of exports and per capita GDP growth to a global aid shock are strongly …

This paper employs a cointegrated vector autoregressive model to assess the growth effect of aid in Uganda over the … period 1972-2008. Results show that aid in Uganda has had both direct and indirect beneficial association with growth; that … of policy, it is crucial to strengthen fiscal response to aid receipts and ensure aid funded projects are closely …

We examine aid-induced Dutch Disease - after controlling for the effects of remittances and FDI flows - in the context … aggregated annual data over the period 1980-2009. Aid causes real exchange rate appreciation in the case of Morocco, especially … either country. We discuss the policy implications of the main results: aid and other types of foreign exchange inflow have …

A substantial amount of aid to developing countries is given to the government, or goes through the budget, meaning it …-country empirical studies on the effects of aid on government spending neglect time series properties, cross-country (recipient …) heterogeneity and the potential for cross-country correlation. This paper examines the impact of foreign aid and taxes on government …