This paper attempts to explore whether foreign aid has a positive impact on a country’s overall development. Although factors such as corruption, civil conflict, and natural disasters reduce the effectiveness of aid, the hypothesis presented in this paper is that foreign aid should bring positive development in a developing country after controlling for such variables. Since substantial funding is required in order to implement programs to raise the education level, life expectancy rate, and standard of living, assistance in the form of foreign aid should be effective.
Recommended CitationLohani '05, Satish (2004) "Effect of Foreign Aid on Development: Does More Money Bring More Development?," The Park Place Economist: Vol. 12
Available at: http://digitalcommons.iwu.edu/parkplace/vol12/iss1/20