Chapter 20 Foreign Aid, History, and Growth

Scott Gilbert and Kevin Sylwester

A chapter in Theory and Practice of Foreign Aid, 2006, pp 403-420 from Emerald Group Publishing Limited

Abstract: Recent work focuses on long-run historical factors in promoting economic growth and raising income. Other work considers whether the inflow of foreign aid works better in countries having good policies or good institutions. A problem with the latter is the endogeneity of policies and institutions since these are mutable. This paper combines the two approaches and asks whether aid (representing an inflow of resources) is better at promoting economic growth in historically “advantaged” (as identified by the literature) as opposed to “disadvantaged” ones. It finds that history still does matter but understanding why is less clear.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:eme:fegzzz:s1574-8715(06)01020-7

DOI: 10.1016/S1574-8715(06)01020-7

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