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Aid effectiveness
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==== Major econometric studies and their findings ==== The main findings of major econometric studies are summarized in the following table. {{alternating rows table|class=wikitable}} |+ Table of econometric studies on aid effectiveness ! Author/year<ref>Bibliographic reference to be given in a note</ref> ! Period ! Findings on aid effectiveness; |- |Mosley 1987<ref>{{Cite book|last=Mosley|first=Paul|url=https://www.worldcat.org/oclc/14240724|title=Foreign aid, its defense and reform|date=1987|publisher=University Press of Kentucky|isbn=0-8131-1608-2|location=Lexington, Ky.|oclc=14240724}}</ref> |1960-1980 |Aid had no significant effect on economic growth. The reason seemed to be fungibility: aid likely released other resources for unproductive uses. |- |Boone 1996<ref>{{cite report|url=https://www.nber.org/system/files/working_papers/w5308/w5308.pdf|title=Politics and the effectiveness of foreign aid|last1=Boone|first1=Peter|date=1995|publisher=National Bureau of Economic Research|access-date=2021-02-19}}</ref><ref>A similar version was published as {{Cite journal|last=Boone|first=Peter|date=1996|title=Politics and the effectiveness of foreign aid|journal=European Economic Review|volume=40|issue=2 |pages=289–329|doi=10.1016/0014-2921(95)00127-1 |s2cid=154155908 |url=http://cep.lse.ac.uk/pubs/download/DP0272.pdf |via=Science Direct}}</ref> | 1971-1990 | Aid had no clear effect on rates of [[infant mortality]] and [[primary education]]. |- |Burnside and Dollar 1997,<ref>{{cite report|url=http://documents1.worldbank.org/curated/en/698901468739531893/pdf/multi-page.pdf|title=Aid, policies and growth|last1=Burnside|first1=Craig|last2=Dollar|first2=David|date=1997|publisher=World Bank|access-date=2021-02-20}}</ref> 2000<ref>{{Cite journal|last1=Burnside|first1=Craig|last2=Dollar|first2=David|date=September 2000|title=Aid, Policies, and Growth|url=https://www.aeaweb.org/articles?id=10.1257/aer.90.4.847|journal=American Economic Review|language=en|volume=90|issue=4|pages=847–868|doi=10.1257/aer.90.4.847|s2cid=14261087 |issn=0002-8282|url-access=subscription}}</ref> |1970-1993 |Aid had a positive impact on growth in developing countries with good policies. But the overall effect of aid was unclear because donors did not especially target such countries. |- |Svensson 1999<ref>{{Cite journal|last=Svensson|first=J.|date=1999|title=Aid, Growth and Democracy|url=https://onlinelibrary.wiley.com/doi/abs/10.1111/1468-0343.00062|journal=Economics & Politics|language=en|volume=11|issue=3|pages=275–297|doi=10.1111/1468-0343.00062|issn=1468-0343|url-access=subscription}}</ref> |1980s, 1990s |Aid had a positive impact on growth in more democratic countries. But aid on average was not channeled to more democratic countries. |- | Arvin and Borillas 2002<ref>{{Cite journal|last1=Arvin|first1=B. Mak|last2=Barillas|first2=Francisco|date=2002-11-01|title=Foreign aid, poverty reduction, and democracy|url=https://doi.org/10.1080/00036840210136718|journal=Applied Economics|volume=34|issue=17|pages=2151–2156|doi=10.1080/00036840210136718|s2cid=154546476 |issn=0003-6846|url-access=subscription}}</ref> |1975-1998 |Aid had no clear effect on [[Gross national income|GNP]] per capita. |- |Kosack 2003<ref>{{Cite journal|last=Kosack|first=Stephen|date=2003-01-01|title=Effective Aid: How Democracy Allows Development Aid to Improve the Quality of Life|url=https://www.sciencedirect.com/science/article/pii/S0305750X02001778|journal=World Development|language=en|volume=31|issue=1|pages=1–22|doi=10.1016/S0305-750X(02)00177-8|issn=0305-750X|url-access=subscription}}</ref> |1974-1985 |Aid had no clear effect on average, but improved the quality of life when combined with democracy. |- |Dunning 2004 <ref>{{Cite journal|last=Dunning|first=Thad|date=2004|title=Conditioning the Effects of Aid: Cold War Politics, Donor Credibility, and Democracy in Africa|url=https://www.cambridge.org/core/journals/international-organization/article/abs/conditioning-the-effects-of-aid-cold-war-politics-donor-credibility-and-democracy-in-africa/08C903F1F4E5C33D0F7E50B6EB7EB8E9|journal=International Organization|language=en|volume=58|issue=2|pages=409–423|doi=10.1017/S0020818304582073|doi-broken-date=2 December 2024 |s2cid=154368924 |issn=1531-5088|url-access=subscription}}</ref> |1975-1997 |In the first few years after the Cold War foreign aid produced a small positive effect on democracy in sub-Saharan African countries, unlike in the previous 15 years. |- |Easterly et al. 2004<ref>{{Cite journal|last1=Easterly|first1=William|last2=Levine|first2=Ross|last3=Roodman|first3=David|date=2004-05-01|title=Aid, Policies, and Growth: Comment|url=https://pubs.aeaweb.org/doi/10.1257/0002828041464560|journal=American Economic Review|language=en|volume=94|issue=3|pages=774–780|doi=10.1257/0002828041464560|issn=0002-8282|url-access=subscription}}</ref> |1970-1997 |The finding of Burnside and Dollar (2000, see above) is not robust to different definitions of aid and good policy. |- | Mosley et al. 2004<ref>{{Cite journal|last1=Mosley|first1=Paul|last2=Hudson|first2=John|last3=Verschoor|first3=Arjan|date=2004-06-01|title=Aid, Poverty Reduction and the 'New Conditionality'|url=https://academic.oup.com/ej/article/114/496/F217/5089279|journal=The Economic Journal|language=en|volume=114|issue=496|pages=F217–F243|doi=10.1111/j.1468-0297.2004.00220.x|s2cid=55919902 |issn=0013-0133|url-access=subscription}}</ref> |1980-2000 |Aid increased pro-poor public spending in low-income countries. |- |Rajan and Subramanian 2005 <ref>{{cite report|url=https://www.nber.org/system/files/working_papers/w11513/w11513.pdf|title=Aid and growth: What does the cross-country evidence really show?|last1=Rajan|first1=Raghuram G.|last2=Subramanian|first2=Arvind|date=2005|publisher=National Bureau of Economic Research|access-date=2021-02-23}}</ref> |1960-2000 |There was on average no robust positive relationship between aid and growth. |- |Yontcheva and Masud 2005<ref>{{cite report|url=https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Does-Foreign-Aid-Reduce-Poverty-Empirical-Evidence-from-Nongovernmental-and-Bilateral-Aid-17973#:~:text=Empirical%20Evidence%20from%20Nongovernmental%20and%20Bilateral%20Aid,-Author%2FEditor%3A&text=Summary%3A,impact%20on%20human%20development%20indicators.&text=Our%20results%20show%20that%20NGO,effectively%20than%20official%20bilateral%20aid.|title=Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and Bilateral Aid|last1=Yontcheva|first1=Boriana|last2=Masud|first2=Nadia|date=2005|publisher=IMF|access-date=2021-02-19}}</ref> |1990-2001 |Aid by [[Non-governmental organization|NGOs]] co-financed by the [[European Commission]] reduced infant mortality but bilateral aid generally did not. |- |Calderon et al. 2006<ref>{{cite report|url=https://publications.iadb.org/publications/english/document/Foreign-Aid-Income-Inequality-and-Poverty.pdf|title=Foreign aid, income inequality, and poverty|last1=Calderon|first1=Mark|last2=Chong|first2=Alberto|date=2006|publisher=Inter-American Development Bank|last3=Gradstein|access-date=2021-02-20}}</ref><ref>A similar version was published as {{Cite journal|last1=Chong|first1=Alberto|last2=Gradstein|first2=Mark|last3=Calderon|first3=Cecilia|date=2009-07-01|title=Can foreign aid reduce income inequality and poverty?|url=https://doi.org/10.1007/s11127-009-9412-4|journal=Public Choice|language=en|volume=140|issue=1|pages=59–84|doi=10.1007/s11127-009-9412-4|s2cid=154071767 |issn=1573-7101|url-access=subscription}}</ref> |1971–2002 |Aid had no clear effect on poverty, inequality, economic growth or democratic institutions. |- |Mosley and Suleiman 2007<ref>{{Cite journal|last1=Mosley|first1=Paul|last2=Suleiman|first2=Abrar|date=2007|title=Aid, Agriculture and Poverty in Developing Countries|url=https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-9361.2006.00354.x|journal=Review of Development Economics|language=en|volume=11|issue=1|pages=139–158|doi=10.1111/j.1467-9361.2006.00354.x|s2cid=154905396 |issn=1467-9361}}</ref> |1980-2002 |Aid most effectively reduced poverty when it supported public expenditures on agriculture, education and infrastructure. |- |Bahmani-Oskooee and Oyolola 2009<ref>{{Cite journal|last1=Bahmani-Oskooee|first1=Mohsen|last2=Oyolola|first2=Maharouf|date=2009-01-01|title=Poverty reduction and aid: cross-country evidence|url=https://doi.org/10.1108/01443330910965796|journal=International Journal of Sociology and Social Policy|volume=29|issue=5/6|pages=264–273|doi=10.1108/01443330910965796|issn=0144-333X|url-access=subscription}}</ref> |1981-2002 |Aid was on average effective in reducing poverty. |- |Clemens et al. 2011<ref>{{Cite journal|last1=Clemens|first1=Michael A.|last2=Radelet|first2=Steven|last3=Bhavnani|first3=Rikhil R.|last4=Bazzi|first4=Samuel|date=2012-06-01|title=Counting Chickens when they Hatch: Timing and the Effects of Aid on Growth|journal=The Economic Journal|language=en|volume=122|issue=561|pages=590–617|doi=10.1111/j.1468-0297.2011.02482.x|issn=0013-0133|doi-access=free}}</ref> |1970-2000 |Aid had a modest positive effect on economic growth.<ref>The study re-analyzed data from Boone (1996), Burnside and Dollar (2000), and Rajan and Subramanian (2008), treating time-lags differently.</ref> |- |Alvi and Senbeta 2012<ref>{{Cite journal|last1=Alvi|first1=Eskander|last2=Senbeta|first2=Aberra|date=2012|title=Does Foreign Aid Reduce Poverty?|url=https://onlinelibrary.wiley.com/doi/abs/10.1002/jid.1790|journal=Journal of International Development|language=en|volume=24|issue=8|pages=955–976|doi=10.1002/jid.1790|issn=1099-1328|url-access=subscription}}</ref> |1981-2004 |Aid—especially multilateral aid—significantly reduced poverty. |- |Kaya et al. 2013<ref>{{Cite journal|last1=Kaya|first1=Ozgur|last2=Kaya|first2=Ilker|last3=Gunter|first3=Lewell|date=2013|title=Foreign Aid and the Quest for Poverty Reduction: Is Aid to Agriculture Effective?|url=https://onlinelibrary.wiley.com/doi/abs/10.1111/1477-9552.12023|journal=Journal of Agricultural Economics|language=en|volume=64|issue=3|pages=583–596|doi=10.1111/1477-9552.12023|issn=1477-9552}}</ref> |1980-2003 |Aid to agriculture significantly reduced poverty. |- |Hirano and Otsubo 2014<ref>{{cite report|url=https://openknowledge.worldbank.org/handle/10986/19397|title=Aid Is Good for the Poor|last1=Hirano|first1=Yumeka|last2=Otsubo|first2=Shigero|date=2014|publisher=World Bank|access-date=2021-02-20}}</ref> |1990s, 2000s |Social aid directly benefitted the poorest in society, while economic aid increased the income of the poor through growth. |- |Nunn and Qian 2014<ref>{{Cite journal|last1=Nunn|first1=Nathan|last2=Qian|first2=Nancy|date=2014-06-01|title=US Food Aid and Civil Conflict|url=https://pubs.aeaweb.org/doi/10.1257/aer.104.6.1630|journal=American Economic Review|language=en|volume=104|issue=6|pages=1630–1666|doi=10.1257/aer.104.6.1630|s2cid=12935268 |issn=0002-8282}}</ref> |1971-2006 |U.S. food aid increased the incidence and duration of civil conflicts, but had no robust effect on inter-state conflicts or the onset of civil conflicts.<ref>Nunn and Qian acknowledged that such aid might also have other, possibly beneficial, effects</ref> |- |Arndt et al 2015<ref>{{Cite journal|date=2015-05-01|title=Assessing Foreign Aid's Long-Run Contribution to Growth and Development|journal=World Development|language=en|volume=69|pages=6–18|doi=10.1016/j.worlddev.2013.12.016|issn=0305-750X|doi-access=free|last1=Arndt |first1=Channing |last2=Jones |first2=Sam |last3=Tarp |first3=Finn }}</ref> |1970-2007 |Aid moderately stimulated growth, promoted structural change, improved social indicators, and reduced poverty. |- |Petrikova 2015 |1994-2011 |Aid had a small positive effect on food security |- |Janjua et al. 2018<ref>{{Cite journal|last1=Janjua|first1=Pervez Zamurrad|last2=Muhammad|first2=Malik|last3=Usman|first3=Muhammad|date=2018-06-01|title=Impact of Project and Programme Aid on Economic Growth: A Cross Country Analysis|url=http://www.thepdr.pk/pdr/index.php/pdr/article/view/2780|journal=The Pakistan Development Review|language=en-US|volume=57|issue=2|pages=145–174|doi=10.30541/v57i2pp.145-174|doi-broken-date=1 November 2024 |issn=0030-9729|doi-access=free|url-access=subscription}}</ref> |1995-2009 |Project aid had a significant effect on economic growth. Programme aid had a significant effect on social development. |- |Abellán and Alonso 2022<ref>{{Cite journal|last1=Abellán|first1=Javier|last2=Alonso|first2=José Antonio|date=2022|title=Promoting global access to water and sanitation: A supply and demand perspective|url=https://www.researchgate.net/publication/358066020|journal=Water Resources and Economics|language=en|volume=38|issue=|pages=100194|doi=10.1016/j.wre.2022.100194|s2cid=246261266 |doi-access=|bibcode=2022WRE....3800194A }}</ref> |1990-2015 |Aid had a positive effect on access to safe drinking water, this effect being especially important when consistent long-term investments are put into place. |- |}
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