The Aid Effectiveness Literature. The Sad Result of 40 Years of Research

Chris Doucouliagos and Martin Paldam

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: The AEL consists of empirical macro studies of the effects of development aid. At the end of 2004 it had reached 97 studies of three families, which we have summarized in one study each using meta-analysis. Studies of the effect on investments show that they rise by 1/3 of the aid – the rest is crowded out by a fall in savings. Studies of the effect on growth show an insignificant positive effect. Studies of the effect on growth, conditional on something else, have till now shown weak results. The Dutch Disease effect of aid has been ignored. The best aggregate estimate is that since its start in the early 1960s aid has increased the standard of living in the poor countries by 20%.

Keywords: Aid effectiveness; meta study; accumulation; growth (search for similar items in EconPapers)
JEL-codes: B2 E21 E22 F35 (search for similar items in EconPapers)
Pages: 26
Date: 2005-07-21
New Economics Papers: this item is included in nep-afr, nep-dev, nep-his and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Related works:
Journal Article: THE AID EFFECTIVENESS LITERATURE: THE SAD RESULTS OF 40 YEARS OF RESEARCH (2009)
Working Paper: The aid effectiveness literature: The sad results of 40 years of research (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2005-15

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