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Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and Bilateral Aid

Author/Editor: Masud, Nadia | Yontcheva, Boriana
Authorized for Distribution: May 1, 2005
Electronic Access: Free Full Text (PDF file size is 519KB)
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: This paper assesses the effectiveness of foreign aid in reducing poverty through its impact on human development indicators. We use a dataset of both bilateral aid and NGO aid flows. Our results show that NGO aid reduces infant mortality and does so more effectively than official bilateral aid. The impact on illiteracy is less significant. We also test whether foreign aid reduces government efforts in achieving developmental goals and find mixed evidence of a substitution effect.
 
Series: Working Paper No. 05/100
Subject(s): Bilateral aid | Multilateral aid | Official Development assistance | Poverty reduction | Economic models
Author's keyword(s): Official Development Aid | NGOs | Panel Data Econometrics
 
English  
    Published:   May 1, 2005        
    ISBN/ISSN:   1934-7073   Format:   Paper
    Stock No:   WPIEA2005100   Pages:   31
    Price:   US$15.00
       
     
Please address any questions about this title to publications@imf.org.