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Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and Bilateral Aid
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Author/Editor: |
Masud, Nadia | Yontcheva, Boriana |
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May 1, 2005 |
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Electronic Access: |
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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.
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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.
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Series: |
Working Paper No. 05/100 |
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Subject(s): |
Bilateral aid | Multilateral aid | Official Development assistance | Poverty reduction | Economic models |
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Author's keyword(s): |
Official Development Aid | NGOs | Panel Data Econometrics |
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Published: |
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May 1, 2005 |
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ISBN/ISSN: |
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1934-7073 |
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Format: |
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Paper |
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Stock No: |
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WPIEA2005100 |
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Pages: |
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31 |
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Price: |
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US$15.00
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