Foreign Aid, Donor Fragmentation, and Economic Growth

Kurt Annen and Stephen Kosempel

No 914, Working Papers from University of Guelph, Department of Economics and Finance

Abstract: This paper analyzes the impact of foreign aid on growth. It differs from the existing literature in at least two important ways. First, we differentiate between foreign aid as technical assistance and non-technical assistance, and demonstrate both theoretically and empirically that this distinction is important. Second, we test the hypothesis that the effectiveness of aid depends on its level of fragmentation. To preview our main results: non-technical assistance has no statistically significant impact on growth; but technical assistance has a positive and significant impact, except in countries where it is highly fragmented.

Keywords: foreign aid; technical assistance; donor fragmentation; growth (search for similar items in EconPapers)
JEL-codes: F34 F35 F43 O11 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2009
New Economics Papers: this item is included in nep-gro
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Citations: View citations in EconPapers (26)

Published in The B.E. Journal of Macroeconomics: Vol. 9: Iss. 1 (Contributions), Article 33.

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Journal Article: Foreign Aid, Donor Fragmentation, and Economic Growth (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:gue:guelph:2009-14

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