The Impact of Aid on Growth Revisited: Do Donor Motives Matter?

IZA Discussion Paper No. 4156

KOF Working Papers / KOF Swiss Economic Institute, Paper No. 225

28 Pages Posted: 13 May 2009

Abstract

The typical identification strategy in aid effectiveness studies assumes donor motives do not influence the impact of aid on growth. We call this homogeneity assumption into question, first constructing a model in which donor motives matter and then testing the assumption empirically.

Keywords: aid, growth, politics

JEL Classification: F35, O40

Suggested Citation

Kilby, Christopher Paul and Dreher, Axel, The Impact of Aid on Growth Revisited: Do Donor Motives Matter?. IZA Discussion Paper No. 4156, KOF Working Papers / KOF Swiss Economic Institute, Paper No. 225, Available at SSRN: https://ssrn.com/abstract=1402503 or http://dx.doi.org/10.2139/ssrn.1402503

Christopher Paul Kilby (Contact Author)

Villanova University ( email )

Villanova, PA 19085
United States

Axel Dreher

Heidelberg University ( email )

Grabengasse 1
Heidelberg, 69117
Germany

HOME PAGE: http://www.axel-dreher.de

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