Aid and growth regressions

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Aid and growth regressions. / Hansen, Henrik; Tarp, Finn.

I: Journal of Development Economics, Bind 64, Nr. 2, 2001, s. 547-570.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Hansen, H & Tarp, F 2001, 'Aid and growth regressions', Journal of Development Economics, bind 64, nr. 2, s. 547-570. https://doi.org/10.1016/S0304-3878(00)00150-4

APA

Hansen, H., & Tarp, F. (2001). Aid and growth regressions. Journal of Development Economics, 64(2), 547-570. https://doi.org/10.1016/S0304-3878(00)00150-4

Vancouver

Hansen H, Tarp F. Aid and growth regressions. Journal of Development Economics. 2001;64(2):547-570. https://doi.org/10.1016/S0304-3878(00)00150-4

Author

Hansen, Henrik ; Tarp, Finn. / Aid and growth regressions. I: Journal of Development Economics. 2001 ; Bind 64, Nr. 2. s. 547-570.

Bibtex

@article{1f09475074c611dbbee902004c4f4f50,
title = "Aid and growth regressions",
abstract = "This paper examines the relationship between foreign aid and growth in real GDP per capita as it emerges from simple augmentations of popular cross country growth specifications. It is shown that aid in all likelihood increases the growth rate, and this result is not conditional on {\textquoteleft}good{\textquoteright} policy. There are, however, decreasing returns to aid, and the estimated effectiveness of aid is highly sensitive to the choice of estimator and the set of control variables. When investment and human capital are controlled for, no positive effect of aid is found. Yet, aid continues to impact on growth via investment. We conclude by stressing the need for more theoretical work before this kind of cross-country regressions are used for policy purposes.",
author = "Henrik Hansen and Finn Tarp",
note = "JEL Classification: O1, O2, C23",
year = "2001",
doi = "10.1016/S0304-3878(00)00150-4",
language = "English",
volume = "64",
pages = "547--570",
journal = "Journal of Development Economics",
issn = "0304-3878",
publisher = "Elsevier",
number = "2",

}

RIS

TY - JOUR

T1 - Aid and growth regressions

AU - Hansen, Henrik

AU - Tarp, Finn

N1 - JEL Classification: O1, O2, C23

PY - 2001

Y1 - 2001

N2 - This paper examines the relationship between foreign aid and growth in real GDP per capita as it emerges from simple augmentations of popular cross country growth specifications. It is shown that aid in all likelihood increases the growth rate, and this result is not conditional on ‘good’ policy. There are, however, decreasing returns to aid, and the estimated effectiveness of aid is highly sensitive to the choice of estimator and the set of control variables. When investment and human capital are controlled for, no positive effect of aid is found. Yet, aid continues to impact on growth via investment. We conclude by stressing the need for more theoretical work before this kind of cross-country regressions are used for policy purposes.

AB - This paper examines the relationship between foreign aid and growth in real GDP per capita as it emerges from simple augmentations of popular cross country growth specifications. It is shown that aid in all likelihood increases the growth rate, and this result is not conditional on ‘good’ policy. There are, however, decreasing returns to aid, and the estimated effectiveness of aid is highly sensitive to the choice of estimator and the set of control variables. When investment and human capital are controlled for, no positive effect of aid is found. Yet, aid continues to impact on growth via investment. We conclude by stressing the need for more theoretical work before this kind of cross-country regressions are used for policy purposes.

U2 - 10.1016/S0304-3878(00)00150-4

DO - 10.1016/S0304-3878(00)00150-4

M3 - Journal article

VL - 64

SP - 547

EP - 570

JO - Journal of Development Economics

JF - Journal of Development Economics

SN - 0304-3878

IS - 2

ER -

ID: 146162