An important feature of aid to developing countries is that it is given to the government. As a result, aid should be expected to affect fiscal behaviour, although theory and existing evidence is ambiguous regarding the nature of these effects. This paper applies techniques developed in the...

There is now a large, if rather contentious and inconclusive, cross-country empirical literature on the effectiveness of aid in contributing to economic growth. Surprisingly, perhaps, there are very few country studies of aid effectiveness, and none of which we are aware that adopt a time series...