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Development Aid and Economic Growth: A Positive Long-Run Relation

Domenii publicaţii > Economie + Tipuri publicaţii > Articol în revistã ştiinţificã

Autori: Camelia Minoiu and Sanjay G. Reddy

Editorial: Christopher Kilby, H.S. Esfahani , Elsevier , Quarterly Review of Economics and Finance, 50, p.2, 2010.


We analyze the growth impact of official development assistance to developing countries. Our approach is different from that of previous studies in two major ways. First, we
disentangle the effects of two components of aid: a developmental, growth-enhancing component, and a geopolitical, possibly growth-depressing component. Second, our
specifications allow for the effect of aid on economic growth to occur over long timelags. Our results indicate that developmental aid promotes long-run growth. The effect is large and robustly significant, and withstands a battery of robustness checks including
alternative proxies for developmental aid, specifications and treatments of outliers.

Cuvinte cheie: official development assistance, economic growth