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This
paper analyzes the growth impact of official
development assistance to developing countries
taking into account both its growth depressing
as well as growth enhancing effects while
allowing the effect of aid on economic
growth to occur over long time lags. The
results, which stand the test of robustness,
indicate that developmental aid has a
large and significant positive impact
on long-run growth and stands clearly
in contrast to the widely publicised current
rightwing argument that aid is ineffective
in promoting growth.
September 19, 2006.
Available at SSRN: http://ssrn.com/abstract=903865 |
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