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WP/22 Aid and Growth: What Meta-Analysis Reveals

Research and Communication on Foreign Aid
Some recent literature in the meta-analysis category where results from a range of studies are brought together throws doubt on the ability of foreign aid to foster economic growth and development. This paper assesses what meta-analysis has to say about the effectiveness of foreign aid in terms of the growth impact. We re-examine key hypotheses, and find that the effect of aid on growth is positive and statistically significant. This significant effect is genuine, and not an artefact of publication selection. We also show why our results differ from those published elsewhere.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2011/22
Title:
WP/22 Aid and Growth: What Meta-Analysis Reveals
Authors:
Tseday Jemaneh Mekasha and Finn Tarp
Publication date:
April 2011
ISBN 13 Web:
978-92-9230-385-3
Copyright holder:
© UNU-WIDER
Copyright year:
2011
Keywords:
aid and growth, meta-analysis, heterogeneity and publication bias
JEL:
F35, O1, O4
Sponsor:
UNU-WIDER gratefully acknowledges the financial contributions to the research programme by the governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development—DFID).
Format:
online
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