Previous studies of aid allocation have concluded that foreign aid is allocated not only according to development needs but also according to donor self-interest. We revisit this topic and allow for donor- as well as recipient-specific effects in our analysis. In addition to comments on the...

Using panel data the question whether Africa's growth performance can be accounted for is analysed in the framework of the augmented Solow model. OLS levels results suggest that the model cannot fully account for Africa's low growth performance. However, these OLS estimates are likely to suffer...