Volume 5 (2014)
Most Downloaded Articles
- Aid, Growth, and Development: Have We Come Full Circle? by Arndt, Channing/ Jones, Sam and Tarp, Finn
- The Limits of Incrementalism: The G20, the FSB, and the International Regulatory Agenda by Helleiner, Eric
- Is the Era of the Dollar Over? by Wyplosz, Charles
- Contagion, Liberalization, and the Optimal Structure of Globalization by Stiglitz, Joseph E.
Aid, Growth, and Development: Have We Come Full Circle?
1University of Copenhagen
2University of Copenhagen
3University of Copenhagen and UNU-WIDER
©2011 by Walter de Gruyter Berlin Boston. This content is open access.
Citation Information: Journal of Globalization and Development. Volume 1, Issue 2, ISSN (Online) 1948-1837, DOI: 10.2202/1948-1837.1121, December 2010
- Published Online:
The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro- and meso-levels, recent literature doubts the ability of foreign aid to foster economic growth and development. This paper assesses the aid-growth literature and, taking inspiration from the program evaluation literature, we re-examine key hypotheses. In our findings, aid has a positive and statistically significant causal effect on growth over the long run, with confidence intervals conforming to levels suggested by growth theory. Aid remains a key tool for enhancing the development prospects of poor countries.