Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102987
Authors: 
Arndt, Channing
Jones, Sam
Tarp, Finn
Year of Publication: 
2014
Series/Report no.: 
WIDER Working Paper 2014/089
Abstract: 
Does foreign aid promote aggregate economic growth? In contrast to widespread perceptions, academic studies of this question have been rapidly converging towards a positive answer. We employ a simulation approach to (i) validate the coherence of recent empirics and (ii) calculate plausible ranges for the rate of return to aid. Our results highlight the long-run nature of aid investments and indicate the return to aid falls in ranges commonly accepted for public investments. We find no basis for the view that aid has a pernicious effect on productivity.
Subjects: 
foreign aid
rate of return
heterogeneity
simulation
JEL: 
C63
F35
O4
ISBN: 
978-92-9230-810-0
Document Type: 
Working Paper

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