The donor community provided around $400 billion in debt relief to developing countries between 1989 and 2004. This paper empirically assesses the impact of debt relief on growth and investment by examining two potential mechanisms. The resource mechanism refers to the resources made available...

This paper studies whether the poorest and most indebted countries receive aid in the form of grants rather than loans. By studying bilateral aid flows to low- and middle-income countries between 1975 and 2005, the paper provides evidence on the determinants of the grant component of aid flows....

Summary From 1989 to 2004 the donor community provided approximately $400 billion in debt relief to developing countries in an attempt to promote growth and reduce poverty. Using a sample of 118 developing countries, this paper empirically assesses the impact of debt relief on growth via (1)...