The Aid Effectiveness Literature: The Sad Result of 40 Years of Research

TY - UNPB

T1 - The Aid Effectiveness Literature

T2 - The Sad Result of 40 Years of Research

AU - Doucouliagos, Hristos

AU - Paldam, Martin

PY - 2005

Y1 - 2005

N2 - The AEL consists of empirical macro studies of the effects of development aid. At the end of 2004 it had reached 97 studies of three families, which we have summarized in one study each using meta-analysis. Studies of the effect on investments show that they rise by 1/3 of the aid – the rest is crowded out by a fall in savings. Studies of the effect on growth show an insignificant positive effect. Studies of the effect on growth, conditional on something else, have till now shown weak results. The Dutch Disease effect of aid has been ignored. The best aggregate estimate is that since its start in the early 1960s aid has increased the standard of living in the poor countries by 20%.

AB - The AEL consists of empirical macro studies of the effects of development aid. At the end of 2004 it had reached 97 studies of three families, which we have summarized in one study each using meta-analysis. Studies of the effect on investments show that they rise by 1/3 of the aid – the rest is crowded out by a fall in savings. Studies of the effect on growth show an insignificant positive effect. Studies of the effect on growth, conditional on something else, have till now shown weak results. The Dutch Disease effect of aid has been ignored. The best aggregate estimate is that since its start in the early 1960s aid has increased the standard of living in the poor countries by 20%.

KW - Aid effectiveness, meta study, accumulation, growth

M3 - Working paper

BT - The Aid Effectiveness Literature

PB - Institut for Økonomi, Aarhus Universitet

CY - Aarhus

ER -