Measuring Aid Effectively in Tests of Aid Effectiveness

In the extensive empirical literature on aid effectiveness, aid is always measured as a share of GDP. However, measuring aid in real dollars per capita is also consistent with standard growth theory. We show that the choice of denominator makes an enormous difference to the sign and significance of coefficients on aid variables in cross-country panel growth regressions. Our aim is to redirect attention towards the theoretical foundations of the growth literature.

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Year of publication:	2007-03
Authors:	Fielding, David ; Knowles, Stephen
Institutions:	Department of Economics, School of Business
Subject:	growth \| aid effectiveness

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 0704 10 pages
Classification:	O19 - International Linkages to Development; Role of International Organizations ; O40 - Economic Growth and Aggregate Productivity. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010611241