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It continues to be heavily disputed whether foreign aid promotes economic growth in developing countries. In most cross-country regressions, aid is considered effective only if it shifts recipient countries to a significantly higher and sustainable growth path. We apply an alternative approach...
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This article examines the causal relationship between foreign aid, poverty, and economic growth in 82 developing … relationship between economic growth and poverty; (b) a unidirectional causal relationship from economic growth to foreign aid; and … (c) unidirectional causality from poverty to foreign aid. In the long-run, the study found that (a) foreign aid tends to …
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and growth, and growth and poverty. We contribute to this literature by exploring the relationships between inequality …, trade liberalisation, growth and poverty in a sample of exclusively developing countries. We find moderately robust evidence … evidence that inequality, growth or trade liberalisation are significant determinants of cross-country variations in poverty …
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