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The millennium development goals:does aid help?

Author

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  • Arlene L. Garces-Ozanne

    (University of Otago, New Zealand)

Abstract

Although poverty-eradication has always been a priority in many governments' agenda, one in four people in the developing world still live in poverty. This study examines how foreign aid, human capital and economic policies, among others, affect real GDP growth and other dimensions of poverty, measured in terms of the Millennium Development Goals (MDGs). Our empirical results suggest that while aid appears to be a significant, albeit negative indicator of real GDP per capita growth, it is a positive determinant of other MDG outcomes. Human capital and good economic policies do not appear to have unique and significant effects on the MDG outcomes, but allowing for interactions with aid, these become more robust indicators of the effectiveness of aid in achieving the MDG.

Suggested Citation

  • Arlene L. Garces-Ozanne, 2011. "The millennium development goals:does aid help?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 44(2), pages 27-39, January-M.
    • Handle: RePEc:jda:journl:vol.44:year:2011:issue2:pp:27-39
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    Citations

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    Cited by:

    1. Chiraag Roy, 2020. "Rethinking Australia’s aid programme to Myanmar: Good governance and “informal constraints”," Development Policy Review, Overseas Development Institute, vol. 38(5), pages 630-645, September.

    More about this item

    Keywords

    Millennium Development Goals; poverty; aid; human capital; economic policies;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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