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Title:Aid effectiveness: Opening the black box PDF Logo
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.
foreign aid
aid effectiveness
simultaneous equations
Document Type:Working Paper
Appears in Collections:WIDER Working Papers, United Nations University (UNU)

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