Aid Effectiveness: A comparison of Tied and Untied Aid

Josepa Miquel-Florensa ()

Working Papers from York University, Department of Economics

Abstract: We evaluate the differential effects of Tied and Untied aid on growth, and how these effects vary with the policy environment of the recipient country. To do so, we use Burnside and Dollar (2000) and Easterly, Levine and Roodman (2003) datasets. We find that aid effectiveness is not significantly different for the two types of aid. However, when we condition on policies, we find that untied aid has a greater impact on growth than tied aid. We find that this difference is significant for the sample of low and middle-income countries, and is not statistically significant, but consistent in sign for the sub sample of low-income countries.

Keywords: Foreign Aid; Aid Contracts; Tied and Untied Aid (search for similar items in EconPapers)
JEL-codes: F35 O40 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2007-04
New Economics Papers: this item is included in nep-afr and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:yca:wpaper:2007_3

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