Assessing Foreign Aid’s Long Run Contribution to Growth and Development

TY - JOUR

T1 - Assessing Foreign Aid’s Long Run Contribution to Growth and Development

AU - Arndt, Thomas Channing

AU - Jones, Edward Samuel

AU - Tarp, Finn

PY - 2015/5/1

Y1 - 2015/5/1

N2 - 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 40 years stimulated growth, promoted structural change, improved social indicators, and reduced poverty.

AB - 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 40 years stimulated growth, promoted structural change, improved social indicators, and reduced poverty.

U2 - 10.1016/j.worlddev.2013.12.016

DO - 10.1016/j.worlddev.2013.12.016

M3 - Journal article

SN - 0305-750X

VL - 69

SP - 6

EP - 18

JO - World Development

JF - World Development

ER -