The puzzle of aid and growth: any role for investment?

Nicola Limodio

International Review of Applied Economics, 2012, vol. 26, issue 1, 1-26

Abstract: This paper explores the relationship between aid and growth, through the explicit inclusion of the investment component. We construct a new database, which adds to the previous papers’ variables (policy, institutional quality and civil unrest) some capital accumulation indicators. Partly based on the main literature, a simultaneous equations model is constructed to account for endogeneity and different methods are applied for a robustness check. Although in line with previous literature, in this paper we find that the capital accumulation process is a significant and fundamental channel to understand the link between development assistance and growth. In low-income countries aid effectiveness seems to be significantly lower.

Date: 2012
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/02692171.2011.557050 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:irapec:v:26:y:2012:i:1:p:1-26

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CIRA20

DOI: 10.1080/02692171.2011.557050

Access Statistics for this article

International Review of Applied Economics is currently edited by Professor Malcolm Sawyer

More articles in International Review of Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().