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| Title: | | Aid effectiveness: Opening the black box  |
| Authors: | | Arndt, Channing Jones, Sam Tarp, Finn |
| Issue Date: | | 2011 |
| Series/Report no.: | | Working paper // World Institute for Development Economics Research 2011,44 |
| Abstract: | | Controversy over the aggregate impact of foreign aid has focused on reduced form estimates of the aid-growth link. The causal chain, through which aid affects developmental outcomes including growth, has received much less attention. We address this gap by: (i) specifying a structural model of the main relationships; (ii) estimating the impact of aid on a range of final and intermediate outcomes; and (iii) quantifying a simplied representation of the full structural form, where aid impacts on growth through key intermediate outcomes. A coherent picture emerges: aid stimulates growth and reduces poverty through physical capital investment and improvements in health. |
| Subjects: | | growth foreign aid aid effectiveness simultaneous equations |
| JEL: | | C23 O1 O2 O4 |
| ISBN: | | 978-92-9230-411-9 |
| Document Type: | | Working Paper |
| Appears in Collections: | | WIDER Working Papers, United Nations University (UNU)
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