Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/54008
Authors: 
Arndt, Channing
Jones, Sam
Tarp, Finn
Year of Publication: 
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

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