Aid and economic growth: Sensitivity analysis

Kwabena Gyimah‐Brempong · Jeffrey Scott Racine · Anthony O. Gyapong

26 citations0/0 files storedJournal of International Development

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

International Development and Aid Economic Growth and Productivity Economic Growth and Development

Abstract

Abstract This paper uses panel data from 77 developing countries, two measures of aid, and a dynamic panel data (DPD) estimator to investigate the effects of aid on economic growth. We find that the relationship between income growth and aid is quadratic in nature. We find a negative partial growth effect of aid at low levels of aid but a positive effect when the ratio of aid to gross national income (GNI) reaches a threshold of between 6.6 and 14.4per cent. We find a positive and significant relationship between aid and physical capital investment. Accounting for indirect effects through investment, we find a positive growth effect at all levels of aid. These results are robust to the measurement of aid, the policy environment, income levels and region. Our results differ from much of the earlier research but are consistent with research that calls for increased aid to developing countries. Copyright © 2010 John Wiley & Sons, Ltd.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 26 citations exist upstream.

References

1991Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations 1998Initial conditions and moment restrictions in dynamic panel data models 1995Initial conditions and moment restrictions in dynamic panel data models n.d.Aid, Policies, and Growth 1997Openness, Productivity and Growth: What Do We Really Know?2005Governance Matters IV : Governance Indicators For 1996-2004 1983On exports and economic growth 1967Foreign Assistance and Economic Development

Cited by

2015Growth, Poverty and Development Assistance: When Does Foreign Aid Work?2022Is too much foreign aid a curse or blessing to developing countries?2025Assessing Foreign Aid’s Influence on Tourism Demand for Developing Economies: When More Isn’t Better 2024Does foreign aid play a role in promoting economic development? Evidence from US aid 2025Green Aid and Environmental Quality in Developing Countries: The Role of Donor‐Recipient Institutional Differences

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.