This paper makes two main contributions. First, we examine the long-run effect of foreign aid on domestic output for 59 … detect possible cross-country differences in the output effect of aid. The main result is that aid has, on average, a …-specific factors explaining the cross-country differences in the estimated long-run effect of aid. In contrast to previous studies, we …

The diversion of development aid to the recipient's military may be one explanation why aid is often found to be … ineffective in promoting economic growth and development. Previous studies have not derived the causal effects of development aid … on military expenditure. Using a new instrumental variable strategy, we examine whether bilateral development aid …

The diversion of development aid to the recipient’s military may be one explanation why aid is often found to be … ineffective in promoting economic growth and development. Previous studies have not derived the causal effects of development aid … on military expenditure. Using a new instrumental variable strategy, we examine whether bilateral development aid …

This paper employs a cointegrated vector autoregressive model to assess the growth effect of aid in Uganda over the … period 1972-2008. Results show that aid in Uganda has had both direct and indirect beneficial association with growth; that … of policy, it is crucial to strengthen fiscal response to aid receipts and ensure aid funded projects are closely …

Using a new instrumental variable strategy, we examine whether bilateral development aid increases military expenditure … receiving aid. The dataset includes new data on military expenditure for 124 recipient countries over the 1975−2012 period. When … accounting for outliers, our results do not suggest that development aid affects military expenditure in the full sample. However …

An important feature of aid to developing countries is that it is given to the government. As a result aid has the … potential to affect budgetary behaviour. Although the (albeit limited) aid-growth literature has addressed the effect of aid on … policy, it has tended to neglect the effect of aid on the fiscal behaviour of governments. While fiscal response models have …

This article tests for the causal direct and interactive association between capital inflow, aid and domestic savings … revealed bi-directional causality between aid and growth and between trade openness and growth. One way causality is concluded … between aid and openness, where the former Granger causes the latter. The reverse is not correct. As practical implications …

We show empirically that aid given to poor developing countries enhances growth and reduces emigration once several … dynamically interacting effects of aid are taken into account in a system of equations. We estimate equations for net immigration … official development aid. We use dynamic panel data methods for a sample of poor countries with GDP per capita below $1200 …

The available evidence on the effects of aid on growth is notoriously mixed. We use a novel empirical methodology, a …, imports, and per capita GDP growth to a “global” aid shock (the common component of individual country aid-to-GDP ratios). We … find that the estimated cumulative responses of exports and per capita GDP growth to a global aid shock are strongly …

The response of an economy to a windfall of foreign exchange (be it aid or natural resource revenues) is often …