Aid, Policies, and Growth

Craig Burnside; David Dollar

doi:10.1257/aer.90.4.847

journal article Sep 01, 2000

Aid, Policies, and Growth

Craig Burnside David Dollar

American Economic Review Vol. 90 No. 4 pp. 847-868 · American Economic Association

View at Publisher Save 10.1257/aer.90.4.847

Abstract

This paper uses a new database on foreign aid to examine the relationships among foreign aid, economic policies, and growth of per capita GDP. We find that aid has a positive impact on growth in developing countries with good fiscal, monetary, and trade policies but has little effect in the presence of poor policies. Good policies are ones that are themselves important for growth. The quality of policy has only a small impact on the allocation of aid. Our results suggest that aid would be more effective if it were more systematically conditioned on good policy. (JEL F350, O230, O400)

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2,059

Citations

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References

Details

Published: Sep 01, 2000
Vol/Issue: 90(4)
Pages: 847-868

Authors

C

Craig Burnside

World Bank, Washington, DC 20433.

D

David Dollar

World Bank, Washington, DC 20433.

Cite This Article

Craig Burnside, David Dollar (2000). Aid, Policies, and Growth. American Economic Review, 90(4), 847-868. https://doi.org/10.1257/aer.90.4.847

Aid, Policies, and Growth

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