Most Downloaded Articles
- The G20 and Development by Birdsall, Nancy and Kharas, Homi
- Redemption or Abstinence? Original Sin, Currency Mismatches and Counter Cyclical Policies in the New Millennium by Hausmann, Ricardo and Panizza, Ugo
- The Renminbi Bloc is Here: Asia Down, Rest of the World to Go?1) by Subramanian, Arvind and Kessler, Martin
- Property Insecurity and Conflict by Lawson-Remer, Terra
- The G20 has Served its Purpose and Should be Replaced by Vestergaard, Jakob and Wade, Robert H.
Aid, Growth, and Development: Have We Come Full Circle?
1University of Copenhagen
2University of Copenhagen
3University of Copenhagen and UNU-WIDER
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.