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Research on the macroeconomic effects of aid has expanded rapidly in recent years. In this paper, we provide a survey of this literature. We start by reviewing some theoretical models that suggest a positive impact of aid on investment and growth. We then discuss the empirical evidence, giving...
Persistent link: https://www.econbiz.de/10014069847
This paper provides a critical review of the recent research on aid effectiveness. It argues that there is an enormous disjunction between research on aid effectiveness and current policies and practices: in particular, recent empirical research efforts have spawned a large body of work that is...
Persistent link: https://www.econbiz.de/10013047901
Recently, Sachs et al. (2004) have argued in favor of a massive increase in foreign aid to Africa in order to escape from a poverty trap. They propose to increase the capital stock in one step, through a large, well-targeted infusion of foreign assistance. In this article we show that foreign...
Persistent link: https://www.econbiz.de/10014058828
The World Bank's health sector projects in Timor-Leste - the Health Sector Rehabilitation and Development Project and … the Second Health Sector Rehabilitation and Development Project - have been among the few successful operations it has … resistance to the World Bank's health policy agenda compared to its policy agenda in other sectors. In terms of wider lessons, we …
Persistent link: https://www.econbiz.de/10010187171
We use an excludable instrument to test the effect of foreign aid on economic growth in a sample of 96 recipient countries over the 1974-2009 period. We interact donor government fractionalization with a recipient country's probability of receiving aid. The results show that fractionalization...
Persistent link: https://www.econbiz.de/10011343084
We investigate the effects of short-term political motivations on the effectiveness of foreign aid. Donor countries ́political motives might reduce the effectiveness of conditionality, channel aid to inferior projects or affect the way aid is spent in other ways, reduce the aid bureaucracyś...
Persistent link: https://www.econbiz.de/10009764394
Ongoing empirical research on the drivers of project-aid effectiveness relies on World Bank evaluation ratings across heterogeneous aid sectors. This leads to two problems. First, it is difficult to identify which dimension of project performance World Bank evaluation ratings are measuring...
Persistent link: https://www.econbiz.de/10010360153
We investigate the effects of short-term political motivations on the effectiveness of foreign aid. Specifically, we test whether the effect of aid on economic growth is reduced by the share of years a country has served on the United Nations Security Council (UNSC) in the period the aid has...
Persistent link: https://www.econbiz.de/10010425577
Development aid from the West may lead to adverse growth effects in the global South due to the neglected cultural context in the development framework. There is evidence that development agendas are mainly premised upon western thought and belief systems. Therefore, I hypothesize that the...
Persistent link: https://www.econbiz.de/10010486866
Political proximity between donor and recipient governments may impair the effectiveness of aid by encouraging favoritism. By contrast, political misalignment between donor and recipient governments may render aid less effective by adding to transaction costs and giving rise to incentive...
Persistent link: https://www.econbiz.de/10010128857