Aid and Growth: What Does the Cross-Country Evidence Really Show?

Raghuram G. Rajan and Arvind Subramanian

The Review of Economics and Statistics, 2008, vol. 90, issue 4, pages 643-665

Abstract: We examine the effects of aid on growth in cross-sectional and panel data-after correcting for the possible bias that poorer (or stronger) growth may draw aid contributions to recipient countries. Even after this correction, we find little robust evidence of a positive (or negative) relationship between aid inflows into a country and its economic growth. We also find no evidence that aid works better in better policy or geographical environments, or that certain forms of aid work better than others. Our findings suggest that for aid to be effective in the future, the aid apparatus will have to be rethought. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2008
View citations in EconPapers

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdfplus/10.1162/rest.90.4.643 link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Aid and Growth: What Does the Cross-Country Evidence Really Show? (2005)
Working Paper: Aid and Growth: What Does the Cross-Country Evidence Really Show? (2005)
Working Paper: Aid and Growth: What Does The Cross-Country Evidence Really Show? (2005)
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: http://EconPapers.repec.org/RePEc:tpr:restat:v:90:y:2008:i:4:p:643-665

Ordering information: This journal article can be ordered from
http://mitpress.mit. ... me.tcl?issn=00346535

Access Statistics for this article

The Review of Economics and Statistics is edited by Daron Acemoglu, George J. Borjas, Dani Rodrik and Julio J. Rotemberg

More articles in The Review of Economics and Statistics from MIT Press
Series data maintained by Christopher F. Baum ().