Aid has been the principal source of development finance for the majority of developing countries over the past few decades. This has spawned a large literature on the effectiveness of aid, which remains essentially inconclusive. The empirical literature has tended to evaluate the impact of aid...

Two findings have been common in the literature on the impact of foreign aid on public sector fiscal behaviour in developing countries. The first is that aid "sticks" to higher levels of recipient government expenditure, with aggregate expenditure often rising by more than the value of the aid...

It is clear from the implications of growth theory that the impact of aid depends on how it affects savings, investment and government behaviour. In respect of low-income countries, which are the principal aid recipients and the economies for which the issue of the impact of aid on growth is...

This paper models the inter-temporal allocation of bilateral foreign development aid to developing countries. A formal theoretical framework is developed, in which aid is treated as a private good of the donor country bureaucratic group responsible for bilateral aid allocation. This model is...

This paper looks at interactions between foreign development aid, economic reform and public sector fiscal behaviour. It proposes a model of the public sector fiscal response to aid inflows, which allows for changes in structural relationships due to an exogenously imposed program of economic...

This paper demonstrates that an empirical link between aid and trade exist (for some donor-recipient pairs), but that the nature of this linkage is complex and can take a variety of forms. By identifying this complexity (and variability) we challenge the assertion, often made in debates...