Does aid cause changes in economic freedom?

Jamie Bologna Pavlik, Benjamin Powell and Andrew T. Young

Southern Economic Journal, 2022, vol. 89, issue 1, 90-111

Abstract: We examine whether aid affects recipient countries' economic freedom. The existing empirical literature examining this relationship has found conflicting results. However, all of these existing studies have struggled to employ plausible identification strategies to find a causal relationship between aid and economic freedom. Our study employs matching methods to better estimate the causal relationship between aid and economic freedom. We find that there is no meaningful causal impact of overall aid on recipient countries' economic freedom. There is some evidence that, specifically, large and sustained increases in “governance‐specific” aid lead to increases in economic freedom, but even then the effects appear to be quantitatively modest.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1002/soej.12587

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:wly:soecon:v:89:y:2022:i:1:p:90-111

Access Statistics for this article

More articles in Southern Economic Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().