This paper investigates aid effectiveness in Melanesia, a region consisting of Fiji, Papua New Guinea, the Solomon Islands, Vanuatu and New Caledonia. These countries are of great interest since they have not performed well despite being rich in resources and receiving large amounts of foreign...

This paper examines how long the impact of foreign aid on growth lasts in recipient countries. An econometric technique is adopted which recognises that the impact of aid in the current year is a function not just of the current aid received but also of the aid received in previous years....