Aid Effectiveness: A Survey of the Recent Empirical Literature
IMF Policy Discussion Papers, March 1, 1998
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- Aid Effectiveness: A Survey of the Recent Empirical Literature
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Bibliographic details
- Authors: Tsidi M Tsikata
- Published: March 1, 1998
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451974850.003
Main findings
- The preponderance of evidence from the empirical literature on aid effectiveness suggests that development aid has not had a significant impact on growth in recipient countries.
- There is some evidence that aid has had positive effects when the policy environment has been conducive to growth.
- Evidence on the relationship between aid and the main channels through which its impact on growth could flow—investment and domestic saving—is mixed.
- There is some indication that aid has had a positive impact on investment and domestic saving where adjustment efforts have been sustained.
Analytical themes
- Assessment of aid’s aggregate impact on recipient-country growth.
- Examination of channels: public investment, private investment, and domestic savings.
- Role of the policy environment and policy orientation in mediating aid effectiveness.
- Regional emphasis including Sub-Saharan Africa as a recipient context.
Policy-relevant implications
- Aid effectiveness appears contingent on recipient-country policy environment; supportive policy settings are associated with more positive outcomes.
- Sustained adjustment efforts may enhance the positive impact of aid on investment and domestic saving.
- No definitive universal finding that aid alone drives growth; policy context and complementary reforms are important.
Content in this bundle
- Aid Effectiveness: A Survey of the Recent Empirical Literature - PPAA/98/1