This study examines the relationships between foreign aid, levels of schooling and democracy for Pakistan using the ARDL cointegration approach. The results of study provide strong evidence for fairly robust long run as well as short run relationships among these variables for the period 1973-2008. The results state that foreign aid and primary school enrollments have negative impact on democra...

Foreign aid is one of the most important policy tools that rich countries use for helping poor countries to improve population well-being and facilitate economic and institutional development. The empirical evidence on its benefits is mixed and has generated much controversy. This paper presents descriptive statistics which show that foreign aid to very poor countries accounts for very little o...

Working Paper 23 April 2016 Michael G. Findley, Adam S. Harris, Helen V. Milner, Daniel Nielson Does foreign aid enable or constrain elite capture of public revenues? Building on prominent debates in the foreign aid literature, we examine whether recipient preferences are consistent with a view – called here donor control theory – that foreign donors wield substantial control over the flow of a...

A US Republican Senator argued that the US must refuse to subsidize foreign family planning (FP) organizations that use their own funds for abortion-related activities because to support them would indirectly support abortion, since "money is fungible." The "Mexico City gag rule" advocated by Republicans would stop US-funded agencies from providing legal abortion or from engaging in a range of...

This article examines how Chinese foreign aid interacts with the quality of host country's governance in shaping state-owned enterprises' (CSOEs') direct investment (FDI) Africa. By analyzing firm-level greenfield FDI data CSOEs between 2003 and 2014 distinguishing China's official development assistance less concessional forms aid, we reveal two main findings. First, negatively affects CSOEs' ...

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 ...

This study addresses the macroeconomic effect of foreign aid on the factors of growth. Specifically, we examine the effects of foreign aid on capital investment (human capital, physical capital) in sub-Saharan Africa. Our methodological approach evaluates the effect of disaggregate aid (aid for infrastructure and aid for education) on capital investment. To test our postulate, we make use of pa...