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Donors' openness to immigration and the effectiveness of foreign aid

Anna Minasyan and Peter Nunnenkamp

No 1983, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: 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)
Date: 2015
New Economics Papers: this item is included in nep-int and nep-mig
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