Aid Effectiveness: Opening the Black Box

Channing Arndt, Sam Jones and Finn Tarp

No wp-2011-044, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Controversy over the aggregate impact of foreign aid has focused on reduced form estimates of the aid-growth link. The causal chain, through which aid affects developmental outcomes including growth, has received much less attention. We address this gap by: (i) specifying a structural model of the main relationships; (ii) estimating the impact of aid on a range of final and intermediate outcomes; and (iii) quantifying a simplied representation of the full structural form, where aid impacts on growth through key intermediate outcomes.

Keywords: Capital investments; Economic development; Health; Panel analysis (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (20)

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