The Macroeconomic Effects of Foreign Aid: A Survey

Philipp Harms and Matthias Lutz

University of St. Gallen Department of Economics working paper series 2004 from Department of Economics, University of St. Gallen

Abstract: Research on the macroeconomic effects of aid has expanded rapidly in recent years. In this paper, we provide a survey of this literature. We start by reviewing some theoretical models that suggest a positive impact of aid on investment and growth. We then discuss the empirical evidence, giving particular attention to the role of institutions and policies in determining aid effectiveness. As a general conclusion, we suggest adopting a more disaggregate perspective with respect both to different types of aid and to various aspects of governance.

Keywords: foreign aid; economic growth; institutions; governance (search for similar items in EconPapers)
JEL-codes: F35 F43 O16 O19 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2004-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:usg:dp2004:2004-11

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