Carl-Johan, Dalgaard and Henrik, Hansen (2009): Evaluating Aid Effectiveness in the Aggregate: Methodological Issues.
Download (462Kb) | Preview
The purpose of the present Evaluation Study is to discuss the methodological problems researchers are facing in gauging the impact of aid on economic growth. The discussion is nontechnical and aimed at an audience without much prior knowledge in the fields of macroeconomics and econometrics. The paper provides insights into the following questions: 1. Why do economists view “aid effectiveness” as synonymous to asking whether aid increases growth in income per capita? 2. Why is it difficult to determine the macroeconomic impact of foreign aid on economic growth? 3. How is it, in principle, possible to solve the difficulties present in evaluating aggregate aid effectiveness?
|Item Type:||MPRA Paper|
|Original Title:||Evaluating Aid Effectiveness in the Aggregate: Methodological Issues|
|Keywords:||Economic growth; foreign aid; instrumental variable regression|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
|Depositing User:||Henrik Hansen|
|Date Deposited:||04. Jun 2010 10:20|
|Last Modified:||12. Feb 2013 04:35|
Anand, S. and A. Sen, 2000. The income component of the Human Development Index. Journal of Human Development, 1, 83-106.
Banerjee, A. V., 2007. Making Aid Work. Boston review books.
Barro, R. J., 1991. Economic growth in a cross section of countries. Quarterly Journal of Economics, 106, p. 407-43.
Bhagwati, J., 2004. In Defense of Globalization. Oxford: Oxford University Press.
Burnside, C. and D. Dollar, 2000. Aid, policies and growth. American Economic Review, 90, 847-868.
Block, S., 2001. Does Africa Grow Differently? Journal of Development Economics, 65, 443-67.
Dalgaard, C-J., 2008. Donor policy rules and aid effectiveness, Journal of Economic Dynamics and Control, 32, 1895-1920.
Dalgaard C-J and H. Hansen, 2001. On Aid, Growth and Good Policies. Journal of Development Studies, 37, 17-41.
Dalgaard, C-J, H. Hansen and F. Tarp, 2004. On the Empirics of Aid and Growth. Economic Journal, 114, 191-216.
Dalgaard, C-J. and H. Hansen, 2009. Evaluating Aid Effectiveness in the Aggregate: A critical assessment of the evidence. Evaluation Study. The Evaluation Department, Danida (Forthcoming).
Durlauf, S. and P. Johnson, 1995. Multiple Regimes and Cross-Country Growth Behaviour. Journal of Applied Econometrics, 10, 365-84.
Easterly, W., 2006. The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good. New York: Penguin Press.
Easterly, W., R. Levine and D. Roodman, 2004. Aid, policies and growth: comment. American Economic Review, 94, 774-780.
Griffin, K.B. and J.L. Enos, 1970. Foreign Assistance: Objectives and Consequences, Economic Development and Cultural Change, 18, 313-327.
Hansen, H. and F. Tarp, 2000. Aid Effectiveness Disputed, Journal of International Development, 12, 375-398.
Lipset, S.,1959. Some Social Requisites of Democracy; Economic Development and Political Legitimacy. American Political Science Review, 53, 69-105.
Lucas, R. Jr., 1998. On the Mechanics of Economic Development. Journal of Monetary Economics, 22, 3-42.
Malchow-Møller, N. and A. Würtz, 2003. Indblik i Statistik—En Grundbog for Videregående Uddannelser. København: Gyldendal.
Masanjala W. and C. Papageorgiou, 2008. Rough and lonely road to prosperity: a reexamination of the sources of growth in Africa using Bayesian Model Averaging, Journal of Applied Econometrics, (forthcoming).
Mishkin, F. S., 2006. The Next Great Globalization. How Disadvantaged Nations Can Harness Their Financial Systems To Get Rich. Princeton: Princeton University Press.
Rajan, R. and A. Subramanian, 2008. Aid and Growth: What does the cross-country evidence really show? Review of Economics and Statistics, (forthcoming).
Sachs, J., 2005. The End of Poverty: Economic Possibilities for Our Time. New York: Penguin Press.
Stiglitz, J. E., 2003. Globalization and Its Discontents. New York: W.W. Norton & Company.
Stiglitz, J. E., 2006. Making Globalization Work. The Next Steps to Global Justice. New York: Penguin Press.
Stock, J.H. and M. W. Watson, 2007. Introduction to Econometrics 2/E. Addison-Wesley.
UNDP, 1990. Human Development Report 1990: Concept and Measurement of human Developemnt, Published by Oxford University Press for UNDP.
UNDP, 2007. Human Development Report 2007/2008: Fighting Climate Change: Human solidarity in a divided world, Published by Palgrave Macmillan for UNDP.
Wooldridge, J. M, 2008. Introductory Econometrics. South Western College.
Qizilbash, M,, 2002. Development, Common Foes and Shared Values, Review of Political Economy, 14, 2002