Skip to main content
Article thumbnail
Location of Repository

Evaluating Aid Effectiveness in the Aggregate: Methodological Issues

By Dalgaard Carl-Johan and Hansen Henrik

Abstract

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?

Topics: O11 - Macroeconomic Analyses of Economic Development, C13 - Estimation: General, O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Year: 2009
OAI identifier: oai:mpra.ub.uni-muenchen.de:23025

Suggested articles


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.