The Return to Foreign Aid

Carl-Johan Lars Dalgaard; Henrik Hansen

doi:10.1080/00220388.2017.1303674

The Return to Foreign Aid

Carl-Johan Lars Dalgaard, Henrik Hansen

4 Citationer (Scopus)

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Abstract

We estimate the average rate of return on investments financed by aid and by domestic resource mobilisation, using aggregate data. Both returns are expected to vary across countries and time. Consequently we develop a correlated random coefficients model to estimate the average returns. Across different estimators and
two different data sources for GDP and investment our findings are remarkably robust; the average gross return on ‘aid investments’ is about 20 per cent. This is in accord with micro estimates of the economic rate of return on aid projects and with aggregate estimates of the rate of return on public capital.

Originalsprog	Engelsk
Tidsskrift	Journal of Development Studies
Vol/bind	53
Udgave nummer	7
Sider (fra-til)	998-1018
Antal sider	20
ISSN	0022-0388
DOI	https://doi.org/10.1080/00220388.2017.1303674
Status	Udgivet - 3 jul. 2017

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10.1080/00220388.2017.1303674Licens: CC BY-NC-ND

The Return to Foreign Aid_2017Forlagets udgivne version, 719 KBLicens: CC BY-NC-ND

http://www.tandfonline.com/doi/pdf/10.1080/00220388.2017.1303674?needAccess=trueLicens: CC BY-NC-ND

Citationsformater

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The Return to Foreign Aid

Abstract

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