Aid Proliferation and Economic Growth: A Cross-Country Analysis

Hidemi Kimura, Yasuyuki Sawada and Yuko Mori

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: In this paper, we examine whether aid proliferation hinders aid effectiveness in promoting economic growth. We employ a wide variety of specifications of the standard aid-growth regression using Roodman's (2007a) dataset. Specifically, we include a donor-concentration index as a proxy for donor proliferation and the interaction term between aid and a donor-concentration index as additional independent variables. Our best empirical results are in favor of a hypothesis that aid proliferation involves a negative effect on economic growth of the recipient countries with proper correction for possible biases arising from omitted variable and endogeneity problems.

Pages: 40 pages
Date: 2007-07
New Economics Papers: this item is included in nep-afr and nep-dev
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Citations: View citations in EconPapers (7)

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https://www.rieti.go.jp/jp/publications/dp/07e044.pdf (application/pdf)

Related works:
Journal Article: Aid Proliferation and Economic Growth: A Cross-Country Analysis (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:07044

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