Foreign Aid in Developing Countries

Crowding out Effect of Foreign Aid in Selected Developing Countries: Panel Data Evidence

crowding out effect of foreign aid in selected developing countries: panel data evidence

Health aid and governance in developing countries.

Despite anecdotal evidence that the quality of governance in recipient countries affects the allocation of international health aid, there is no quantitative evidence on the magnitude of this effect, or on which dimensions of governance influence donor decisions. We measure health-aid flows over 1995-2006 for 109 aid recipients, matching aid data with measures of different dimensions of governa...

Throwing Good Money After Bad? The Effects of Foreign Aid on Income Inequality in Developing Countries

This paper examines the effect of official development aid (ODA) on income inequality in developing countries. Using data from the World Bank’s World Development Indicators, we use a country fixed-effects approach to address endogeneity issues. We find no significant effect of ODA per capita on inequality in developing countries. We therefore conclude that, consistent with previous research in ...

Foreign Aid and Long-run Economic Growth: Empirical Evidence for a Panel of Developing Countries

This paper investigates the relationship between foreign aid and growth in per capita GDP using annual data from the 1960 to 1997 period for a sample of 71 aid-receiving developing economies. The results show that the effect of foreign aid on economic growth is positive, permanent, statistically significant, and sizable: raising foreign aid by $20 per person of the receiving country results in ...