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Aid and economic growth: Sensitivity analysis
Journal article

Aid and economic growth: Sensitivity analysis

Abstract

Abstract This paper uses panel data from 77 developing countries, two measures of aid, and a dynamic panel data (DPD) estimator to investigate the effects of aid on economic growth. We find that the relationship between income growth and aid is quadratic in nature. We find a negative partial growth effect of aid at low levels of aid but a positive effect when the ratio of aid to gross national income (GNI) reaches a threshold of between 6.6 and …

Authors

Gyimah‐Brempong K; Racine JS; Gyapong A

Journal

Journal of International Development, Vol. 24, No. 1, pp. 17–33

Publisher

Wiley

Publication Date

January 2012

DOI

10.1002/jid.1708

ISSN

0954-1748