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Cross country regressions on aid effectiveness have failed to provide substantial evidence on the\neffects of foreign aid. This study focuses on country performance in a production theory context.\nBy means of the non-parametric DEA method, we study 60 individual low and middle income\ncountries between 1995 and 2000. Is there a systematic correlation between resource intensity and\ncountry efficiency? We find indications of a positive relation between capital intensity and country\nefficiency. We then investigate whether aid is the conclusive part of capital providing this\ncorrelation, but when linking country efficiency development to aid, there is no clear pattern to be found.
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