This paper contributes to the literature on aid and economic growth. We posit that it is not the level of aid flows per se but the stability of such flows that determines the impact of aid on economic growth. Three measures of aid instability are employed. One is a simple deviation from trend,...

This paper contributes to the literature on FDI and economic growth. We deviate from previous studies by introducing measures of the volatility of FDI inflows. As introduced into the model, these are predicted to have a negative effect on growth. We estimate the standard model using...

This paper reports on trends and levels of capital inflows, and the volatility of such inflows, to a sample of 60 developing countries over the period from 1970 to 1997. The data cover aid and other development finance as the principal forms of official flows, FDI and other private flows, and...