Are there Negative Returns to Aid? a Comment
November 1, 2004
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Summary
Amid controversies surrounding aid effectiveness, an increasing number of empirical studies find support for the idea that aid can spur growth and that the aid-growth relationship is nonlinear. Lensink and White propose a model to illustrate the possible existence of what has been labeled an "aid Laffer curve." This short paper highlights the model's weaknesses and suggests that the model does not fulfill the purpose of illustrating the possible existence of negative returns to aid.
Subject: Technology
Keywords: decreasing returns, WP
Pages:
12
Volume:
2004
DOI:
Issue:
212
Series:
Working Paper No. 2004/212
Stock No:
WPIEA2122004
ISBN:
9781451874921
ISSN:
1018-5941
