Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries?...

This paper critically assesses the current policy consensus that greater integration into the world economy is beneficial for poor countries. It examines both the theoretical basis and recent empirical studies on the link between openness and economic performance. Although ?new? endogenous...

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries'...