The literature focusing on the effects of foreign aid on economic growth contains a wide range of conclusions. Despite this lack of consensus, policy makers have been strongly influenced by the work of Burnside and Dollar (2000) (B&D). In addition to their primary conclusion that total aid is linked with growth in a good policy environment, B&D make a claim which is not directly supported by their results. My research is motivated by their claim that multilateral aid is the most effective form of aid. This paper demonstrates that B&D's data does not support this claim.
"A Question of Consumption? An Analysis of the Relative Effectiveness of Multilateral and Bilateral Aid Receipts,"
Undergraduate Economic Review: Vol. 7
, Article 12.
Available at: http://digitalcommons.iwu.edu/uer/vol7/iss1/12