This paper employs a cointegrated vector autoregressive model to assess the growth effect of aid in Uganda over the period 1972-2008. Results show that aid in Uganda has had both direct and indirect beneficial association with growth; that it is the productivity and not the stead state level of...

Theoretical predictions and empirical evidence on the impact of foreign aid and fiscal policy on growth are mixed. This paper examines the effect of fiscal variables (government expenditure and revenue) and aid on growth using annual time series data for Kenya over the period 1964 - 2002....

There is now a large, if rather contentious and inconclusive, cross-country empirical literature on the effectiveness of aid in contributing to economic growth. Surprisingly, perhaps, there are very few country studies of aid effectiveness, and none of which we are aware that adopt a time series...