Aid and Growth : What Does the Cross-Country Evidence Really Show ?

Raghuram G. Rajan and Arvind Subramanian February 2007 We examine the effects of aid on growth in cross-sectional and panel data—after correcting for the possible bias that poorer (or stronger) growth may draw aid contributions to recipient countries. Even after this correction, we find little robust evidence of a positive (or negative) relationship between… CONTINUE READING