Development Aid and Growth in Transition Countries

Zohid Askarov and Chris Doucouliagos

World Development, 2015, vol. 66, issue C, 383-399

Abstract: Empirical studies normally analyze diverse and heterogeneous groups of countries, producing very mixed evidence on the effectiveness of development aid in promoting growth. We focus on whether aid promotes economic growth in transitional economies. We find that aid, on average, has had a positive impact on growth for this specific group of countries. This result is robust to samples, estimators, and the use of alternate instruments to address endogeneity. Aid effectiveness is not conditional on good policy and there is little evidence of non-linear growth effects arising from aid.

Keywords: aid effectiveness; growth; transitional economies; endogeneity (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:66:y:2015:i:c:p:383-399

DOI: 10.1016/j.worlddev.2014.08.014

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