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

_IMF Working Papers, May 1, 2005_

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## Bibliographic details
- Authors: Boriana Yontcheva, Nadia Masud
- Published: May 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451861198.001

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### Core research question and scope
- Assesses the effectiveness of foreign aid in reducing poverty through its impact on human development indicators.
- Uses a dataset of both bilateral aid and NGO aid flows.
- Authors: Boriana Yontcheva, Nadia Masud.
- Publication date: May 1, 2005.
- Publication type: IMF Working Paper No. 2005/100.

### Key empirical findings
- NGO aid reduces infant mortality and does so more effectively than official bilateral aid.
- The impact of foreign aid on illiteracy is less significant.
- Tests for a substitution effect (whether foreign aid reduces government efforts in achieving developmental goals) yield mixed evidence.

### Methodological notes (as reported)
- Analysis is based on a dataset combining bilateral aid and NGO aid flows.
- Dependent variables and controls referenced include: dependent variable, education expenditure, government effort, health expenditure, recipient country government.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/does-foreign-aid-reduce-poverty-empirical-evidence-from-nongovernmental-and-bilateral-aid-17973_