Aid and Growth: Have We Come Full Circle?

Publikation: Working paperForskning

Standard

Aid and Growth : Have We Come Full Circle? / Arndt, Channing; Jones, Edward Samuel; Tarp, Finn.

Department of Economics, University of Copenhagen, 2009.

Publikation: Working paperForskning

Harvard

Arndt, C, Jones, ES & Tarp, F 2009 'Aid and Growth: Have We Come Full Circle?' Department of Economics, University of Copenhagen.

APA

Arndt, C., Jones, E. S., & Tarp, F. (2009). Aid and Growth: Have We Come Full Circle? Department of Economics, University of Copenhagen.

Vancouver

Arndt C, Jones ES, Tarp F. Aid and Growth: Have We Come Full Circle? Department of Economics, University of Copenhagen. 2009.

Author

Arndt, Channing ; Jones, Edward Samuel ; Tarp, Finn. / Aid and Growth : Have We Come Full Circle?. Department of Economics, University of Copenhagen, 2009.

Bibtex

@techreport{abb91800b97511debc73000ea68e967b,
title = "Aid and Growth: Have We Come Full Circle?",
abstract = "The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature has turned decidedly pessimistic with respect to the ability of foreign aid to foster economic growth. Policy implications, such as the complete cessation of aid to Africa, are being drawn on the basis of fragile evidence. This paper first assesses the aid-growth literature with a focus on recent contributions. The aid-growth literature is then framed, for the first time, in terms of the Rubin Causal Model, applied at the macroeconomic level. Our results show that aid has a positive and statistically significant causal effect on growth over the long run with point estimates at levels suggested by growth theory. We conclude that aid remains an important tool for enhancing the development prospects of poor nations.",
keywords = "Faculty of Social Sciences, foreign aid, aid effectiveness, causal effects",
author = "Channing Arndt and Jones, {Edward Samuel} and Finn Tarp",
note = "JEL classification: O1, O4, F35, C21",
year = "2009",
language = "English",
publisher = "Department of Economics, University of Copenhagen",
address = "Denmark",
type = "WorkingPaper",
institution = "Department of Economics, University of Copenhagen",

}

RIS

TY - UNPB

T1 - Aid and Growth

T2 - Have We Come Full Circle?

AU - Arndt, Channing

AU - Jones, Edward Samuel

AU - Tarp, Finn

N1 - JEL classification: O1, O4, F35, C21

PY - 2009

Y1 - 2009

N2 - The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature has turned decidedly pessimistic with respect to the ability of foreign aid to foster economic growth. Policy implications, such as the complete cessation of aid to Africa, are being drawn on the basis of fragile evidence. This paper first assesses the aid-growth literature with a focus on recent contributions. The aid-growth literature is then framed, for the first time, in terms of the Rubin Causal Model, applied at the macroeconomic level. Our results show that aid has a positive and statistically significant causal effect on growth over the long run with point estimates at levels suggested by growth theory. We conclude that aid remains an important tool for enhancing the development prospects of poor nations.

AB - The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature has turned decidedly pessimistic with respect to the ability of foreign aid to foster economic growth. Policy implications, such as the complete cessation of aid to Africa, are being drawn on the basis of fragile evidence. This paper first assesses the aid-growth literature with a focus on recent contributions. The aid-growth literature is then framed, for the first time, in terms of the Rubin Causal Model, applied at the macroeconomic level. Our results show that aid has a positive and statistically significant causal effect on growth over the long run with point estimates at levels suggested by growth theory. We conclude that aid remains an important tool for enhancing the development prospects of poor nations.

KW - Faculty of Social Sciences

KW - foreign aid

KW - aid effectiveness

KW - causal effects

M3 - Working paper

BT - Aid and Growth

PB - Department of Economics, University of Copenhagen

ER -

ID: 15146192