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

By Camelia Minoiu, S. Reddy. Social Science Research Network, 2009

405 citations recorded by the source corpus.

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.

Subfields: Development, Economics and Econometrics, Safety Research

View Paper: https://www.semanticscholar.org/paper/94ab9aaa44cb2e19af53dd75f221aa64d1261c3e

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Development

1. Sam Jones
2. F. Tarp
3. Sandrina B. Moreira
4. M. McGillivray
5. D. Roodman
6. Markus Brückner
7. Axel Dreher
8. E. Werker

In Economics and Econometrics

1. Sam Jones
2. F. Tarp
3. D. Roodman
4. Markus Brückner
5. Sandrina B. Moreira
6. Axel Dreher
7. M. McGillivray
8. Nancy Qian

In Safety Research

1. F. Tarp
2. Sam Jones
3. D. Roodman
4. Sandrina B. Moreira

Citations in the corpus

• Aid and growth: New evidence using an excludable instrument (2020, neutral): “The third uses internal instruments and estimates difference or system GMM regressions (Minoiu and Reddy 2010).”
• Does foreign aid harm political institutions (2015, methodology): “Applying different methods and data, they find a positive and statistically significant effect of aid when considered over the long-run (Arndt et al., 2015a, 2010; Juselius et al., 2014; Brückner, 2013; Clemens et al., 2012; Minoiu and Reddy, 2010).”