Evaluating Aid Effectiveness in the Aggregate: A critical assessment of the evidence

Carl-Johan Dalgaard and Henrik Hansen

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of the present evaluation study is to discuss the empirical studies that attempt to estimate the impact of foreign aid on economic growth. The study draws on a previous evaluation study (Dalgaard and Hansen, 2009), which introduces the general econometric methodology involved in making assessments about the aggregate impact of aid. In order to fully benefit from the discussion below it is therefore advisable for readers without prior knowledge of econometrics to review the material discussed in Dalgaard and Hansen (2009). The present study provides insights into the following questions 1. What are the central mechanisms linking aid to growth? 2. How much should one expect from aid a priori? 3. What are the best available estimates of the impact from total aid on economic growth in income per capita? 4. Does aid modality matter?

Keywords: Economic growth; foreign aid (search for similar items in EconPapers)
JEL-codes: C13 O11 O47 (search for similar items in EconPapers)
Date: 2010-01
New Economics Papers: this item is included in nep-dev
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Citations: View citations in EconPapers (3)

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