Effectiveness of Foreign Aid: A Critical Assessment

No Thumbnail Available
File version
Author(s)
Jayathilaka, Ruwan
Bandara, Ranjith
Griffith University Author(s)
Primary Supervisor
Other Supervisors
Editor(s)

Ranjith Bandara

Date
2009
Size
File type(s)
Location
License
Abstract

The studies on effectiveness of foreign aid have come through three generations and contain many arguments. Some experts charge that aid has enlarged government bureaucracies, perpetuated bad governments, enriched the elite in poor countries, or just been wasted. Others argue that although aid has sometimes failed, it has supported poverty reduction and growth in some countries and prevented worse performance in others. This paper explores the main arguments of the effectiveness of foreign aid and expounds the relationship between aid, growth and development. The findings of this paper reveal that the aid and growth during the last decade has found a positive relationship, in contrast to popular perceptions, particularly studies that have allowed for diminishing returns and have controlled for other factors that affect growth. However, it should be noted some studies have found that the aid-growth relationship is conditional on the policy or institutional environment, but many of those results have been fragile.

Journal Title

Sri Lanka Economic Journal

Conference Title
Book Title
Edition
Volume

9

Issue

2

Thesis Type
Degree Program
School
DOI
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
Rights Statement
Item Access Status
Note
Access the data
Related item(s)
Subject

International Economics and International Finance

Applied Economics

Persistent link to this record
Citation
Collections