This chapter reviews the outcomes of empirical research on the aid–growth nexus since the publication of the Assessing Aid report. It discusses what policy lessons can be drawn from this research and whether there is a need for the donor community to reconsider aid policies in case they have been based on the results of the World Bank report. The chapter provides a short description of the World Bank research results, and in particular of the Burnside–Dollar paper. It discusses the criticism of the Burnside–Dollar study, which has been raised in a number of studies. The chapter overviews empirical studies that present alternative views on how aid may affect growth. It discusses policy lessons. The chapter also focuses on the critique expressed regarding the econometric background papers to the Assessing Aid report, in particular the work of Burnside–Dollar.
|Title of host publication||International Development Governance|
|Editors||A.S. Huque, H. Zafarullah|
|Place of Publication||New York|
|Publisher||Taylor and Francis Inc.|
|Number of pages||19|
|Publication status||Published - 1-Jan-2017|