Finally a breakthrough? The recent rise in the size of the estimates of aid effectiveness

Hristos Doucouliagos, Martin Paldam

Research output: Working paper/Preprint Working paperResearch

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Abstract

The authors have previously surveyed the AEL, aid (empirical) effectiveness literature, using the technique of meta-analysis. We reached the result that the small positive effect of aid on growth found in the average study is mostly a publication selection bias. This present study concentrates on the new literature from 2007 onward which is divided into: Period (A) 2007-08: where the AEL showed aid ineffectiveness. Period (B) 2009-12: where the results are better. Three hypotheses may explain the upward kink in the results: (i) Aid effectiveness has increased. (ii) A breakthrough has occurred in the models and estimators. (iii) The improvement is an artifact. Unfortunately the data support the third hypothesis only.
Original languageEnglish
Place of publicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages30
Publication statusPublished - 3 Feb 2014
SeriesEconomics Working Papers
Number2014-07

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