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 …

This paper examines the link between foreign aid, economic growth, and welfare in a small
open economy. External transfers impinge on the recipient's macroeconomic performance …

The paper develops a theoretical framework for understanding the mechanism through
which foreign aid affects macroeconomic performance. The authors find that the long‐run …

Economic growth is an issue of primary concern to policy makers in both developed and
developing economies. As a consequence, growth theory has long occupied a central role …

The econometric literature has been unable to establish a robust association between
foreign aid and growth and poverty reduction. In this paper, we argue that aid effectiveness …

Empirical evidence on the relationship between aid and economic growth is mixed and
inconclusive. This paper proposes a theory to explain these contradictory findings. We build …

While much empirical evidence suggests that the Cobb–Douglas production function may
be a reasonable benchmark for aggregate analysis, we argue that the practice, particularly …

Since the beginning of the 21st century, emerging donors have developed a suite of aid
innovations that play a significant role in the international financing arrangements of …

In this paper we present an endogenous growth model with foreign transfers for public
capital formation in order to analyze the implications for growth maximization when the …

In this article the effects of government infrastructure investment in a small open economy
environment are analysed. Apart from enhancing the country's output directly, government …