Development Aid and Economic Growth: A Positive Long-Run Relation

Sanjay Reddy and Camelia Minoiu

No 2009/118, IMF Working Papers from International Monetary Fund

Abstract: We analyze the growth impact of official development assistance to developing countries. Our approach is different from that of previous studies in two major ways. First, we disentangle the effects of two kinds of aid: developmental and non-developmental. Second, our specifications allow for the effect of aid on economic growth to occur over long periods. Our results indicate that developmental aid promotes long-run growth. The effect is significant, large and robust to different specifications and estimation techniques.

Keywords: WP; donor country; aid-quality donor ranking; donor characteristic; growth rate; development aid; donor nation; donor-recipient match (search for similar items in EconPapers)
Pages: 32
Date: 2009-05-01
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Citations: View citations in EconPapers (29)

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Related works:
Journal Article: Development aid and economic growth: A positive long-run relation (2010)
Working Paper: Development Aid and Economic Growth: A Positive Long-Run Relation (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2009/118

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