The purpose of the chapter is to analyze Africa's economic successes in the past half century, to understand not only what made it possible but also and more importantly what risk factors may eventually bring it to an end or compromise it. While it may not be possible for Africa to alter, for...

We study how 22 donors allocate their bilateral aid among 147 recipient countries over the 1970-2004 period to investigate whether changes in the international aid architecture - at the international and country level - have led to changes in behavior. We find that after the fall of the Berlin...

We explore whether foreign aid affects developing countries' creditworthiness, as proxied by the Institutional Investor's measure of country credit risk. Based on a simple model of international borrowing and lending, we develop the hypothesis that current aid reduces the likelihood of future...

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries'...

Research on the macroeconomic effects of aid has expanded rapidly in recent years. In this paper, we provide a survey of this literature. We start by reviewing some theoretical models that suggest a positive impact of aid on investment and growth. We then discuss the empirical evidence, giving...

The OECD Survey on Blended Finance Funds and Facilities represents a major step forward to consolidate evidence and provide further policy guidance in support of the OECD DAC Blended Finance Principles, whose focus is unlocking commercial finance for the Sustainable Development Goals. This...

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries'...