Hodler, Roland; Knight, David S. - Department of Economics, Faculty of Business and Economics - 2009
We test the hypothesis that the effect of foreign aid on economic growth is positive in ethnically homogenous countries …, but decreasing in ethnic fractionalization. Using panel data covering 114 aid recipient countries over the period 1962 to … estimates suggest that foreign aid may have retarded economic growth in many fractionalized countries, most of which are located …