Djankov, Simeon; Garcia-Montalvo, Jose; Reynal-Querol, Marta - 2006
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...