Aid, Policies and Growth: A Nonlinear Reassessment

The association between foreign aid and growth has been controversial for decades and the evidence is quitemixed with results sensitive to data samples and modelling approaches. We reassess the relationship betweenaid, policy and growth implementing a novel semiparametric estimation method that allo...

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Autores principales: Geng, Xin, Hernandez, Manuel A.
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2017
Materias:
Acceso en línea:https://hdl.handle.net/10568/146319
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author Geng, Xin
Hernandez, Manuel A.
author_browse Geng, Xin
Hernandez, Manuel A.
author_facet Geng, Xin
Hernandez, Manuel A.
author_sort Geng, Xin
collection Repository of Agricultural Research Outputs (CGSpace)
description The association between foreign aid and growth has been controversial for decades and the evidence is quitemixed with results sensitive to data samples and modelling approaches. We reassess the relationship betweenaid, policy and growth implementing a novel semiparametric estimation method that allows for nonlineari-ties and control for endogeneity. We use a panel of 61 developing countries for the period 1970–2005. Theresults show that the aid-policy-growth relationship is complex with varying correlation patterns across dif-ferent aid and policy levels. Aid does not seem growth-enhancing, except at very high levels (above 7% ofAid/GDP), whereas the effect may arrive with a lag at lower levels. Good policies are positively associatedwith growth and is more obvious in better policy environments. Aid effectiveness does not increase withbetter policies.
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spelling CGSpace1463192025-11-06T05:04:26Z Aid, Policies and Growth: A Nonlinear Reassessment Geng, Xin Hernandez, Manuel A. policies parametric programming developing countries growth The association between foreign aid and growth has been controversial for decades and the evidence is quitemixed with results sensitive to data samples and modelling approaches. We reassess the relationship betweenaid, policy and growth implementing a novel semiparametric estimation method that allows for nonlineari-ties and control for endogeneity. We use a panel of 61 developing countries for the period 1970–2005. Theresults show that the aid-policy-growth relationship is complex with varying correlation patterns across dif-ferent aid and policy levels. Aid does not seem growth-enhancing, except at very high levels (above 7% ofAid/GDP), whereas the effect may arrive with a lag at lower levels. Good policies are positively associatedwith growth and is more obvious in better policy environments. Aid effectiveness does not increase withbetter policies. 2017 2024-06-21T09:06:37Z 2024-06-21T09:06:37Z Working Paper https://hdl.handle.net/10568/146319 en https://doi.org/10.1080/00036846.2019.1677847 Open Access application/pdf International Food Policy Research Institute Geng, Xin; and Hernandez, Manuel A. 2017. Aid, Policies and Growth: A Nonlinear Reassessment. IFPRI Discussion Paper 1699. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/146319
spellingShingle policies
parametric programming
developing countries
growth
Geng, Xin
Hernandez, Manuel A.
Aid, Policies and Growth: A Nonlinear Reassessment
title Aid, Policies and Growth: A Nonlinear Reassessment
title_full Aid, Policies and Growth: A Nonlinear Reassessment
title_fullStr Aid, Policies and Growth: A Nonlinear Reassessment
title_full_unstemmed Aid, Policies and Growth: A Nonlinear Reassessment
title_short Aid, Policies and Growth: A Nonlinear Reassessment
title_sort aid policies and growth a nonlinear reassessment
topic policies
parametric programming
developing countries
growth
url https://hdl.handle.net/10568/146319
work_keys_str_mv AT gengxin aidpoliciesandgrowthanonlinearreassessment
AT hernandezmanuela aidpoliciesandgrowthanonlinearreassessment