This paper analyses the relationship between aid, policies and growth in 54 countries over 45 years. Specifically it hypothesises that if aid affects growth then it does so over a long period of time and that the extent to which this is true depends on an individual country’s policy environment. This paper both finds no direct relationship between aid and growth, and that the effectiveness of aid does not depend on the policy environment. This paper therefore adds to the existing evidence showing that Burnside and Dollar’s (2000) result of aid effectiveness does not have external validity.
Morley, Benjamin J.
"Aid, Policies and Long-Run Growth,"
Undergraduate Economic Review:
1, Article 5.
Available at: http://digitalcommons.iwu.edu/uer/vol7/iss1/5