A Question of Consumption? An Analysis of the Relative Effectiveness of Multilateral and Bilateral Aid Receipts

Authors

Oliver Zornow, Lawrence UniversityFollow

Abstract

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.

Recommended Citation

Zornow, Oliver (2011) "A Question of Consumption? An Analysis of the Relative Effectiveness of Multilateral and Bilateral Aid Receipts," Undergraduate Economic Review: Vol. 7: Iss. 1, Article 12.
Available at: https://digitalcommons.iwu.edu/uer/vol7/iss1/12