Donors' openness to immigration and the effectiveness of foreign aid
Anna Minasyan and
No 1983, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)
We argue that donors could improve the effectiveness of foreign aid by pursuing complementary and coherent non-aid policies. In particular, we hypothesize that aid from donors that are open to immigration has stronger growth effects than aid from closed donors. We estimate the aid-growth nexus in first differences to mitigate endogeneity concerns. Our empirical results support the hypothesis that donors' openness to immigration strengthens the growth effects of foreign aid.
Keywords: aid effectiveness; migration; remittances; economic growth (search for similar items in EconPapers)
JEL-codes: F24 F35 O11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1983
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