Does Aid Work? A Cross-country Aid Efficiency Study
(2005)Department of Economics
- Abstract
- Foreign aid and all kinds of support aiming at international development are of great importance for the developing nations. The World Bank's report "Assessing aid" claims that aid is efficient conditional on institutional quality and good policy. There have been a lot of criticism and debate around this conclusion. E.g. Dalgaard, Hansen and Tarp who claim that this conclusion is doubtful since the construction of the policy index is questionable. In addition they argue that aid is less efficient in countries with tropical climate. With this as background, the author has constructed two policy indexes with alternative measures on trade and monetary policy and run these in a growth regression together with a measure of institutional quality... (More)
- Foreign aid and all kinds of support aiming at international development are of great importance for the developing nations. The World Bank's report "Assessing aid" claims that aid is efficient conditional on institutional quality and good policy. There have been a lot of criticism and debate around this conclusion. E.g. Dalgaard, Hansen and Tarp who claim that this conclusion is doubtful since the construction of the policy index is questionable. In addition they argue that aid is less efficient in countries with tropical climate. With this as background, the author has constructed two policy indexes with alternative measures on trade and monetary policy and run these in a growth regression together with a measure of institutional quality and a tropical dummy in order to see whether aid works and if the choice of variables in and construction of the policy index might influence the outcome of the growth regression. The results were indeed very dependent on which combination of variables that were included in ther regression therefore no straight answer whether aid spurs growth in developing nations can be decided. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1336780
- author
- Olsson, Tove
- supervisor
- organization
- year
- 2005
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- growth, foreign aid, policy, tropical climate, institutions, regression, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
- language
- English
- id
- 1336780
- date added to LUP
- 2005-04-25 00:00:00
- date last changed
- 2010-08-03 10:51:26
@misc{1336780,
abstract = {{Foreign aid and all kinds of support aiming at international development are of great importance for the developing nations. The World Bank's report "Assessing aid" claims that aid is efficient conditional on institutional quality and good policy. There have been a lot of criticism and debate around this conclusion. E.g. Dalgaard, Hansen and Tarp who claim that this conclusion is doubtful since the construction of the policy index is questionable. In addition they argue that aid is less efficient in countries with tropical climate. With this as background, the author has constructed two policy indexes with alternative measures on trade and monetary policy and run these in a growth regression together with a measure of institutional quality and a tropical dummy in order to see whether aid works and if the choice of variables in and construction of the policy index might influence the outcome of the growth regression. The results were indeed very dependent on which combination of variables that were included in ther regression therefore no straight answer whether aid spurs growth in developing nations can be decided.}},
author = {{Olsson, Tove}},
language = {{eng}},
note = {{Student Paper}},
title = {{Does Aid Work? A Cross-country Aid Efficiency Study}},
year = {{2005}},
}