What Type of Economic Growth Does Foreign Aid Support?
نویسندگان
چکیده
The consensus of the aid effectiveness literature is that foreign aid is effective at spurring economic growth in recipient countries. However, economic growth is heterogeneous in nature, driven by a number of different activities within an economy. This paper contributes to the literature by disaggregating the Gross Domestic Product of recipients in order to investigate the type of economic growth that foreign aid spurs. Results are encouraging with evidence to suggest that foreign aid is effective at increasing agricultural growth and household consumption in recipient countries. JEL Classification Codes: O1, O4, C23.
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