We provide a comprehensive survey of the recent literature on the link between productive
government expenditure and economic growth. We show that an understanding of the core …

A windfall of natural resources (or aid) faces government with choices of how to manage
public debt, investment and the distribution of funds for consumption. The permanent income …

Cofinancing from government agencies, development banks, and private actors is
acknowledged as an important tool to bridge the infrastructure finance gap in developing …

We examine the idea that aid and foreign direct investment (FDI) are complementary
sources of foreign capital. We argue that the relationship between aid and FDI is …

Empirical explorations of the growth and aggregate productivity impacts of infrastructure
have been characterized by ambiguous (countervailing signs) results with little robustness …

This chapter examines the conditions under which foreign aid will be effective in raising
growth, reducing poverty, and meeting basic needs in areas such as education and health …

We use oil price fluctuations to test the impact of transfers from wealthy OPEC nations to
their poorer Muslim allies. The instrument identifies plausibly exogenous variation in foreign …

Does official aid pave the road for private foreign investment or does it suffocate private
initiative by diverting resources towards unproductive activities? We explore this question …

In the past three decades, developing countries have made significant economic and social
progress, from improved infant mortality rates to higher life expectancy. Yet, 1.3 billion …

This paper presents a dynamic macroeconomic model that captures key linkages between
foreign aid, public investment, growth, and poverty. Public capital is disaggregated into …