 Aid instability as a measure of uncertainty and the positive impact of aid on growthRobert Lensink and Oliver Morrissey Journal of Development Studies, 2000, vol. 36, issue 3, 31-49 Abstract: This article contributes to the literature on aid and economic growth. We posit that uncertainty, measured as the instability of aid receipts, will influence the relationship between aid and investment, how recipient governments respond to aid, and will capture the fact that some countries are especially vulnerable to shocks. When we account for uncertainty (which is negative and significant), we find that aid has a significant positive effect on growth, largely due to its effect on the volume of investment. The finding that uncertainty of aid receipts reduces the effectiveness of aid is robust. When the regression is estimated for the sub-sample of African countries these findings hold, although the effectiveness of aid appears weaker than for the full sample. Date: 2000 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:jdevst:v:36:y:2000:i:3:p:31-49 Ordering information: This journal article can be ordered from DOI: 10.1080/00220380008422627 Access Statistics for this article Journal of Development Studies is currently edited by Howard White, Oliver Morrissey and Ken Shadlen More articles in Journal of Development Studies from Taylor & Francis Journals |
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