Aid, policies, and growth: Reply

By C. Burnside, H. Hansen, F. Tarp, M. McPherson, J. Dayton-Johnson, P. Guillaumont, L. Chauvet, Robert Lensink, H. Akhand. 2004

244 citations recorded by the source corpus.

In Burnside and Dollar (2000) we used standard regression techniques from the growth literature to measure the effect of foreign aid on growth. The main finding in our paper was that the effect of foreign aid on growth depended on the macroeconomic policies of recipient countries. In this issue, William Easterly et al. (2004), challenge the robustness of our result to new data. Before commenting on their findings it is useful to review the basis of our original findings. Our paper focused on three versions of a panel growth regression, estimated using data for 51 countries, and six four-year periods, from 1970 to 1993. These regressions may be summarized as:

Subfields: Development, Economics and Econometrics, Safety Research

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Citations in the corpus

The Anarchy of Numbers (2007, background): “There are other third-generation studies (Hadjimichael et al. 1995; Durbarry, Gemmell, and Greenaway 1998; Lensink and White 2001; Svensson 1999; Chauvet and Guillaumont 2002; Burnside and Dollar 2004).”
Aid Effectiveness on Growth. A Meta Study (2008, background): “The World Bank group papers are: Burnside and Dollar (2000; 2004); Collier and Dehn (2001); Collier and Dollar (2002); Collier and Hoeffler (2004); and Svensson (1999).”
The Amplification Effect: Foreign Aid's Impact on Political Institutions (2013, methodology): “We follow the existing literature in our choice of instruments (see, Burnside and Dollar 2000, 2004; Easterly et al. 2004; Djankov, Montalvo, and Reynal-Querol 2008).”
It Works; It Doesn't; It Can, But That Depends (2006, background): “In one paper (Burnside and Dollar 2004a), they directly respond to the criticism brought forward by Easterly et al. (2004).”
What has 100 Billion Dollars Worth of Debt Relief Done for Low-Income Countries? (2005, background): “To capture the differential effect of 15 See for example Burnside and Dollar (2000, 2004).”
International financing for climate change adaptation in small island developing states (2017, result): “This finding has parallels with a substantial section of the literature aiming to determine whether aid is allocated to countries with better institutions and policies (see Burnside and Dollar 2000, 2004; Collier and Dollar 2002).”
Transparency, Reproducibility, and the Credibility of Economics Research (2018, unknown): “A well-known example of an extension involves Burnside and Dollar (2000), which showed that foreign aid seemed to be effective in increasing GDP if the recipient country was well-governed.”