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Aid and Growth Accelerations: Vulnerability Matters

Patrick Guillaumont and Laurent Wagner

No wp-2012-031, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper confronts three conundrums. First, does the relationship between aid and growth fade over time when aid is successful? Second, why are aid inflows neglected in the literature on growth acceleration (or episodes). Third, why is country vulnerability overlooked in the same literature? Our purpose is to address these puzzles, and in doing so two hypotheses are formulated and tested. First, we assume that aid can have a positive (catalytic) effect on the launching of growth episodes, as well as on their duration.

Keywords: Econometric models; Economic assistance and foreign aid; Economic development; Estimation theory (search for similar items in EconPapers)
Date: 2012
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Working Paper: Aid and Growth Accelerations: Vulnerability Matters (2012)
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