EconPapers    
Economics at your fingertips  
 

Does Aid Reduce Poverty?

Juliana Yael Milovich

No 122, OPHI Working Papers from Queen Elizabeth House, University of Oxford

Abstract: Fifty years of literature on aid effectiveness has so far proven inconclusive. Two main challenges still require some attention. The first is to properly identify the causal effect of aid on poverty alleviation. To address it, I exploit differences in the number of years countries have been temporary members of the United Nations Security Council as an instrument for the average amount of economic aid disbursed by the United States. The second is to obtain reliable data on poverty, which I confront by using multidimensional poverty data from the Oxford Poverty and Human Development Initiative (OPHI). For a sample of 64 developing countries, I estimate a significant relationship between higher amounts of aid received during the period 1946-1999 and lower Multidimensional Poverty Index (MPI) between 2000 and 2014. On the contrary, the relationship does not seem to be significant when poverty is measured from an income perspective. Alternative measures of poverty could help improve the understanding of the relationship between development aid and poverty alleviation and might also contribute to improved targeting for aid disbursements.

Date: 2018-10
New Economics Papers: this item is included in nep-dev
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ophi.org.uk/does-aid-reduce-poverty/ (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qeh:ophiwp:ophiwp122

Access Statistics for this paper

More papers in OPHI Working Papers from Queen Elizabeth House, University of Oxford Queen Elizabeth House 3 Mansfield Road, Oxford, OX1 3TB United Kingdom. Contact information at EDIRC.
Bibliographic data for series maintained by IT Support ().

 
Page updated 2024-05-26
Handle: RePEc:qeh:ophiwp:ophiwp122