There is a substantial literature evaluating the impact of aid at the macroeconomic level using cross-country regressions. However, despite econometric advances in recent years, there remain many flaws in this approach. Similar problems beset cross-country analysis of the impact of aid on...

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...