Abstract

http://ssrn.com/abstract=776001
 
 

References (39)



 
 

Citations (120)



 


 



Aid and Growth: What Does the Cross-Country Evidence Really Show?


Raghuram G. Rajan


University of Chicago - Booth School of Business; International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Arvind Subramanian


International Monetary Fund (IMF); Center for Global Development

August 2005

NBER Working Paper No. w11513

Abstract:     
We examine the effects of aid on growth--in cross-sectional and panel data--after correcting for the bias that aid typically goes to poorer countries, or to countries after poor performance. Even after thiscorrection, we find little robust evidence of a positive (or negative) relationship between aid inflows into a country and its economic growth. We also find no evidence that aid works better in better policy or geographical environments, or that certain forms of aid work better than others. Our findings, which relate to the past, do not imply that aid cannot be beneficial in the future. But theydo suggest that for aid to be effective in the future, the aid apparatus will have to be rethought. Our findings raise the question: what aspects of aid offset what ought to be the indisputable growth enhancing effects of resource transfers? Thus, our findings support efforts under way at national and international levels to understand and improve aid effectiveness.

Number of Pages in PDF File: 49

working papers series


Download This Paper

Date posted: July 31, 2006  

Suggested Citation

Rajan, Raghuram G. and Subramanian, Arvind, Aid and Growth: What Does the Cross-Country Evidence Really Show? (August 2005). NBER Working Paper No. w11513. Available at SSRN: http://ssrn.com/abstract=776001

Contact Information

Raghuram G. Rajan (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-4437 (Phone)
773-702-0458 (Fax)
International Monetary Fund (IMF) ( email )
700 19th Street NW
Washington, DC 20431
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
773-702-9299 (Phone)
773-702-0458 (Fax)
Arvind Subramanian
International Monetary Fund (IMF) ( email )
700 19th Street NW
Washington, DC 20431
United States
Center for Global Development
2055 L St. NW
5th floor
Washington, DC 20036
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,745
Downloads: 283
Download Rank: 37,156
References:  39
Citations:  120

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.422 seconds