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 gr...

This study empirically examines the causal relationships between foreign aid (ODA) and economic development for India and Sri Lanka using the annual data 1960-61 to 2010-11. Both India and Sri Lanka need to maintain high growth to create more employment opportunity and to reduce poverty. Considering the long run causal linkage among foreign aid, trade performance, financial sector development, ...

Debates over foreign aid effectiveness have neglected the views of recipients, especially as they compare aid to domestic government programs. We argue that citizens may see foreign aid as an escape from clientelism because aid is less politicized than government programs and citizens trust donors more. They may also favor multilateral over bilateral aid for similar reasons. We test the argumen...

Why do governments choose multilateralism? We examine a principalagent model in which states trade some control over the policy for greater burden sharing. The theory generates observable hypotheses regarding the reasons for and the patterns of support and opposition to multilateralism. To focus our study, we analyze support for bilateral and multilateral foreign aid giving in the US. Using new...

This paper shows that foreign aid in postwar Lebanon passed through two phases with distinct features that have had far reaching implications for postwar development. In the first phase lasting from 1992-97, foreign aid was mainly channelled towards providing resources for postwar reconstruction projects. The second phase from 1997 to the present witnessed a qualitative shift in foreign aid uti...