• Engineering, Economics
  • Published 2001

The impact of aid and external debt on growth and investment

@inproceedings{Hansen2001TheIO,
  title={The impact of aid and external debt on growth and investment},
  author={Henrik Hansen},
  year={2001}
}
What happens if HIPC debt relief resources are not additional? We seek to answer this question by quantifying the impact of debt service payments and aid flows in crosscountry growth and investment regressions. Based on the regressions we assess the likely impact of debt relief with and without changes in the aid flows. The result is that one-for-one changes in debt service payments and official aid flows leaves the growth rate unchanged, i.e., there seems to be no growth without additionality… CONTINUE READING