The paper examines empirically the proposition that aid to poor countries is detrimental for external competitiveness, giving rise to Dutch disease type effects. At the aggregate level, aid is found to have a positive effect on growth of labour productivity. A sectoral decomposition shows that...

This paper empirically analyzes the impact of aid on education for about 100 countries over the period 1970 - 2005. We estimate a system of equations to test whether and to what extent the impact of sector-specific aid on educational attainment depends on (i) the extent to which aid adds to...

We show that the impact of foreign aid on bureaucratic quality in recipient countries varies with the mode of delivery. Specifically, grants are found to impair the functioning of the bureaucracy, whereas loans are not. The negative impact of grants is larger when they are given as budget...

Fortschritte bei der Armutsbekämpfung sind in Bolivien seit Beginn der Reformen eher bescheiden geblieben, wenn man die erzielten Stabilisierungs- und Wachstumserfolge als Referenz zugrunde legt; sie sind sogar enttäuschend, wenn man sie an den Zielen der Armutsreduzierungsstrategie misst. Die...