This paper is a contribution to the literature on aid and growth. Despite an extensive empirical literature in this … area, existing studies have not addressed directly the mechanisms via which aid should affect growth. We identify … consumption spending. With the use of residual generated regressors, we achieve a measure of the total effect of aid on growth …

In Nowak-Lehmann et al. (2012), we used time-series methods to investigate the impact of aid on per capita GDP. Lof … aid variable, and a different sample, they claim to find a positive effect of aid on income, which contrasts with our own … causality tests shows that there is no robust effect of aid on income. …

Is aid effective in increasing growth rates of recipient countries? This is the burning question in any economic … evaluation of aid effectiveness, yet there is no consensus on the answer. Recent advances in growth theory help us to identify … the various mechanisms by which aid can increase growth, notably through increasing investment in physical and human …

Most rich countries developed without aid, and this 'self-development' has some intrinsic advantages. In today … many poor countries. Aid can therefore usefully be thought of as a necessary but 'second-best option'. The challenge then … is how to manage this second-best option, particularly in the more aid-dependent states and the more fragile environments …

Most rich countries developed without aid, and this .self-development. has some intrinsic advantages. In today … many poor countries. Aid can therefore usefully be thought of as a necessary but .second-best option.. The challenge then … is how to manage this second-best option, particularly in the more aid-dependent states and the more fragile environments …