Aid and Conditionality

By Jonathan R.W. Temple. 2010

161 citations recorded by the source corpus.

This chapter examines the conditions under which foreign aid will be effective in raising growth, reducing poverty, and meeting basic needs in areas such as education and health. The primary aim is not to draw policy conclusions, but to highlight the main questions that arise, the contributions of the academic literature in addressing them, and the areas where much remains unknown. After describing some key concepts and trends in aid, the chapter examines the circumstances under which aid might transform productivity, and when it can achieve things that private capital flows cannot. The chapter reviews the relevant theory and evidence. Next, it turns to some of the other considerations that might form part of a structural model linking outcomes to aid. These include Dutch Disease effects, the fiscal response to aid, and the important connections between aid and governance, both positive and negative.

Subfields: Development, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/e26522f8ebebcb8094627db90fe56fa32169a3e1

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Citations in the corpus

Good Countries or Good Projects? Macro and Micro Correlates of World Bank Project Performance (2011, result): “1 This line of research has produced a wide variety of conflicting results, to the point where Temple (2010) suggests that it “must be regarded as a work in progress”.”
On the simultaneity problem in the aid and growth debate (2013, background): “However, one of the main problems that this literature continues to struggle with, is nding a plausible time-varying instrumental variable for foreign aid that satises in the growth regression the exclusion restriction (e.g. Deaton, 2010; Temple, 2010).”
FRAGILE STATES AND DEVELOPMENT POLICY (2011, unknown): “Temple (2010) provides an excellent review of many of the economic debates.”
Counting Chickens when they Hatch: Timing and the Effects of Aid on Growth* (2012, unknown): “The Economic Journal 2011 Royal Economic Society. little empirical support for the notion that aid systematically reduces growth (Temple, 2010).”
Beyond Aid: A Conceptual Perspective on the Transformation of Development Cooperation (2015, unknown): “ These include self-‐interest of donors (Alesina & Dollar, 2000; Berthélemy, 2006; Temple, 2010), recipient needs and altruistic motives of donors (Claessens et al., 2007; Headey, 2008), rewarding recipients’ performance on specific indicators …”
Aid and Growth: What Meta-Analysis Reveals (2013, unknown): “Absence of evidence should only with great care be interpreted as evidence of absence (as noted by Temple, 2010).”
The Long-Run Impact of Foreign Aid in 36 African Countries: Insights from Multivariate Time Series Analysis (2014, unknown): “Temple (2010) adds nuance, but we depart from the shared observation that many of the econometric methods used in the cross-country (as well as time-series) literature are based on strong assumptions, which need to be satis…ed for the conclusions to be valid.”
The effect of aid on growth: evidence from a Quasi-experiment (2014, unknown): “3 Also see Temple (2010) and Qian (2015) for two comprehensive reviews of theory, evidence, and practice of foreign aid.”