What Is the Aggregate Economic Rate of Return to Foreign Aid?
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What Is the Aggregate Economic Rate of Return to Foreign Aid? / Arndt, Channing; Jones, Edward Samuel; Tarp, Finn.
I: The World Bank Economic Review, Bind 30, Nr. 3, 28.07.2015, s. 446-474.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - What Is the Aggregate Economic Rate of Return to Foreign Aid?
AU - Arndt, Channing
AU - Jones, Edward Samuel
AU - Tarp, Finn
N1 - JEL codes: E1, O11, O41
PY - 2015/7/28
Y1 - 2015/7/28
N2 - In recent years, academic studies have been converging towards the view that foreign aid promotes aggregate economic growth. We employ a simulation approach to: (i) validate the coherence of empirical aid-growth studies published since 2008; and (ii) calculate plausible ranges for the rate of return to aid. Our results highlight the long run nature of aid-financed investments and the importance of channels other than accumulation of physical capital. We find the return to aid lies in ranges commonly accepted for public investments and there is little to justify the view that aid has had a significant pernicious effect on productivity.
AB - In recent years, academic studies have been converging towards the view that foreign aid promotes aggregate economic growth. We employ a simulation approach to: (i) validate the coherence of empirical aid-growth studies published since 2008; and (ii) calculate plausible ranges for the rate of return to aid. Our results highlight the long run nature of aid-financed investments and the importance of channels other than accumulation of physical capital. We find the return to aid lies in ranges commonly accepted for public investments and there is little to justify the view that aid has had a significant pernicious effect on productivity.
KW - Faculty of Social Sciences
KW - E1
KW - O11
KW - O41
UR - http://wber.oxfordjournals.org/content/30/3/446.full
U2 - 10.1093/wber/lhv033
DO - 10.1093/wber/lhv033
M3 - Journal article
VL - 30
SP - 446
EP - 474
JO - World Bank Economic Review
JF - World Bank Economic Review
SN - 0258-6770
IS - 3
ER -
ID: 146208306