Assessing Foreign Aid's Long-Run Contribution to Growth in Development

UNU-WIDER 07/2013; 2013/072.

Posted: 26 Nov 2014

See all articles by Channing Arndt

Channing Arndt

United Nations - World Institute for Development Economics Research (UNU/WIDER)

Sam Jones

University of Copenhagen - Department of Economics

Finn Tarp

University of Copenhagen - Department of Economics

Date Written: July 2013

Abstract

This paper confirms recent evidence of a positive impact of aid on growth and widens the scope of evaluation to a range of outcomes including proximate sources of growth (e.g., physical and human capital), indicators of social welfare (e.g., poverty and infant mortality), and measures of economic transformation (e.g., share of agriculture and industry in value added). Focusing on long-run cumulative effects of aid in developing countries, and taking due account of potential endogeneity, a coherent and favorable pattern of results emerges. Aid has over the past forty years stimulated growth, promoted structural change, improved social indicators and reduced poverty.

Suggested Citation

Arndt, Channing and Jones, Sam and Tarp, Finn, Assessing Foreign Aid's Long-Run Contribution to Growth in Development (July 2013). UNU-WIDER 07/2013; 2013/072. , Available at SSRN: https://ssrn.com/abstract=2530893

Channing Arndt (Contact Author)

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

Katajanokanlaituri 6 B
Helsinki, FI‐00160
Finland

Sam Jones

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Finn Tarp

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
186
PlumX Metrics