Year: 2011
Type: other
Abstract: This paper contributes to the aid effectiveness debate by applying a vector autoregression\nmodel to a panel of Sub-Saharan African countries. This method avoids the\nneed for instrumental variables and allows one to analyse the effect of foreign aid on\nhuman development and on economic development simultaneously. The full sample\nresults indicate a small increase in economic growth following a fairly substantial aid\nshock. The size of the effect puts the result somewhere between the arguments of aid\noptimists and those of aid pessimists. Human development, for which I use the growth\nrate of life expectancy as a proxy, responds positively to aid shocks in democracies.
Author: Robert Gillanders
Institution: Hanken School of Economics
Language: English
Subfield: Development
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1508575014