## Development Aid and Economic Growth: A Positive Long-Run Relation

_IMF Working Papers, May 1, 2009_

## Source details

**Canonical URL:** [Development Aid and Economic Growth: A Positive Long-Run Relation](https://www.imf.org/en/publications/wp/issues/2016/12/31/development-aid-and-economic-growth-a-positive-long-run-relation-22986)

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## Bibliographic details
- Authors: Sanjay Reddy, Camelia Minoiu
- Published: May 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451872651.001

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### Summary
- Title: Development Aid and Economic Growth: A Positive Long-Run Relation
- Authors: Sanjay Reddy, Camelia Minoiu
- Date: May 1, 2009
- Core finding: Developmental aid promotes long-run growth; the effect is significant, large and robust to different specifications and estimation techniques.

### Research approach and scope
- Two major distinctions from previous studies:
  - Disentangle the effects of two kinds of aid: developmental and non-developmental.
  - Specifications allow for the effect of aid on economic growth to occur over long periods.
- Subject areas: Aid flows, Bilateral aid, Development assistance, Foreign aid, Personal income
- Keywords: aid-quality donor ranking, development aid, donor characteristic, donor country, donor nation, donor-recipient match, growth rate, WP

### Key findings and conclusions
- Developmental aid has a positive impact on long-run economic growth.
- The positive effect:
  - Is significant.
  - Is large.
  - Is robust to different specifications and estimation techniques.

### Disclaimer (as presented in the source)
- 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.

*IMF Working Paper — Sanjay Reddy and Camelia Minoiu, May 1, 2009.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/development-aid-and-economic-growth-a-positive-long-run-relation-22986_