Previous works have demonstrated that developing nations rich in fossil fuels typically suffer from lower levels of economic growth than nations without them. Increased foreign aid in these countries could potentially reverse their misfortunes and improve their overall welfare. Three indicators were selected in this study to gauge national welfare; economic growth, improvements in national institutions and changes in life expectancy over time. Using a dataset of more than 100 nations collected from 1983-2010, however, I found foreign aid to have nearly zero effect on any of these measurements of national welfare within fossil fuel rich nations.
Walker, Jacob M.
"Fossil Fuels, Development and Aid: Should More Be Done to Help?,"
Undergraduate Economic Review: Vol. 13
, Article 15.
Available at: http://digitalcommons.iwu.edu/uer/vol13/iss1/15