This paper confirms recent evidence of a positive impact of aid on growth and widens the scope of evaluation to a range of outcomes including proximate sources of growth (e.g., physical and human capital), indicators of social welfare (e.g., poverty and infant mortality), and measures of...

Does foreign aid promote aggregate economic growth? In contrast to widespread perceptions, academic studies of this question have been rapidly converging towards a positive answer. We employ a simulation approach to (i) validate the coherence of recent empirics and (ii) calculate plausible...

We broadly review the challenges encountered and choices made in the national assessments of consumption poverty using the 1996/97, 2002/03, and 2008/09 budget surveys. Efforts to maintain consistency with the previous survey imply that prior choices tend to be adopted in subsequent analyses....

Controversy over the aggregate impact of foreign aid has focused on reduced form estimates of the aid-growth link. The causal chain, through which aid affects developmental outcomes including growth, has received much less attention. We address this gap by: (i) specifying a structural model of...

The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature doubts the ability of foreign aid to foster economic growth and development. This paper assesses the aid-growth literature and, taking inspiration from the program...

The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature has turned decidedly pessimistic with respect to the ability of foreign aid to foster economic growth. Policy implications, such as the complete cessation of aid to...

Changes in the relative prices of commodities consumed in different shares across income groups are known to influence real measures of inequality. Using household budget survey and price data in Mozambique from 2002/03 and 2008/09, we show that accounting for the relative price changes driven...

Changes in relative prices of commodities consumed in different shares across income groups can be expected to alter real income differentials between these groups. Using Mozambican household budget survey and price data from 2002/03 and 2008/09, we show that once relative price increases are...

This study presents and discusses structural features of the Mozambique economy through the lens of a recently constructed 2019 social accounting matrix (SAM). This is an important reality check of the SAM construction process since it brings together various data sources that are not...

Mozambique has achieved remarkable macroeconomic success over recent decades, boasting one of the world's highest rates of GDP growth. However, absolute poverty remains persistent, spilling over into social unrest. To better understand the link between aggregate growth and household welfare,...