An important feature of aid to developing countries is that it is given to the government. As a result, aid should be expected to affect fiscal behaviour. Traditional approaches to modelling fiscal effects are beset by theoretical and empirical problems. This paper applies techniques developed...

It is common practice in empirical development macroeconomics to use cross-country samples for econometric analyses. One issue that is rarely addressed in this literature is the appropriateness of pooling when panels are used. In particular, does it matter to the results if the countries exhibit...

The literature on the stylised facts of structural change in LDCs has been bedevilled by three problems: (i) drawing time-series inferences from cross-section results; (ii) endogeneity of the variables involved; and (iii) an inability to separate short-run from long-run effects. This paper uses...

A number of recent cross-country studies have revitalised the debate on the effectiveness of aid. While there is mounting evidence that aid does contribute to growth, there is some dispute as to whether good policy is a necessary condition for aid effectiveness. This paper is a contribution to...