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Aid Effectiveness: Opening the Black Box

Author

Listed:
  • Channing Arndt
  • Sam Jones
  • Finn Tarp

Abstract

Controversy over the aggregate impact of foreign aid has focused on reduced form estimates of the aid-growth link. The causal chain, through which aid affects developmental outcomes including growth, has received much less attention. We address this gap by: (i) specifying a structural model of the main relationships; (ii) estimating the impact of aid on a range of final and intermediate outcomes; and (iii) quantifying a simplied representation of the full structural form, where aid impacts on growth through key intermediate outcomes.

Suggested Citation

  • Channing Arndt & Sam Jones & Finn Tarp, 2011. "Aid Effectiveness: Opening the Black Box," WIDER Working Paper Series wp-2011-044, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2011-044
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2011-044.pdf
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    Citations

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    Cited by:

    1. Łukasz Marć, 2017. "The Impact of Aid on Total Government Expenditures: New Evidence on Fungibility," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 627-663, August.
    2. Declan French, 2016. "Did the Millennium Development Goals Change Trends in Child Mortality?," Health Economics, John Wiley & Sons, Ltd., vol. 25(10), pages 1312-1325, October.
    3. Arndt, Channing & Jones, Sam & Tarp, Finn, 2015. "Assessing Foreign Aid’s Long-Run Contribution to Growth and Development," World Development, Elsevier, vol. 69(C), pages 6-18.
    4. Wako, Hassen, 2016. "Aid, institutions and economic growth: Heterogeneous parameters and heterogeneous donors," MERIT Working Papers 2016-009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran S. & Bennett, Sara E., 2023. "Does foreign aid affect innovation and institutional quality in middle-income countries?," Evaluation and Program Planning, Elsevier, vol. 100(C).
    6. Faheem Jehangir Khan, 2017. "Opening the Black Box: Managing the Aid Policy Process in Pakistan," PIDE-Working Papers 2017:149, Pakistan Institute of Development Economics.
    7. Stefan Leiderer, 2015. "Donor Coordination for Effective Government Policies?," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(8), pages 1422-1445, November.
    8. Lee, Bommi & Heyneman, Stephen P., 2013. "International Organizations and the Future of Education Assistance," WIDER Working Paper Series 018, World Institute for Development Economic Research (UNU-WIDER).
    9. González, Mariano & Larrú, José María, 2012. "Egalitarian aid. The impact of aid on Latin American inequality," MPRA Paper 41660, University Library of Munich, Germany.
    10. Faheem Jehangir Khan, 2016. "The Aid Policy Network in Pakistan: An Actor-Network Analysis," PIDE-Working Papers 2016:140, Pakistan Institute of Development Economics.
    11. Bandyopadhyay, Subhayu & Lahiri, Sajal & Younas, Javed, 2015. "Financing growth through foreign aid and private foreign loans: Nonlinearities and complementarities," Journal of International Money and Finance, Elsevier, vol. 56(C), pages 75-96.
    12. Ranjula Bali Swain & Supriya Garikipati & Fan Yang Wallentin, 2020. "Does Foreign Aid Improve Gender Performance in Recipient Countries?," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(7), pages 1171-1193, October.
    13. Lukasz Marc, 2014. "The Causal Links between Aid and Government Expenditures," Tinbergen Institute Discussion Papers 14-012/V, Tinbergen Institute.
    14. de Janvry, Alain & Dethier, Jean-Jacques, 2012. "The World Bank and governance : the Bank's efforts to help developing countries build state capacity," Policy Research Working Paper Series 6275, The World Bank.
    15. Łukasz Marć, 2015. "The impact of aid on total government expenditures: New evidence on fungibility," WIDER Working Paper Series wp-2015-010, World Institute for Development Economic Research (UNU-WIDER).
    16. Olufemi Saibu & Felix Obioesio, 2017. "Foreign Aid, Fiscal Optimality and Economic Growth in Nigeria," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 67(4), pages 85-99, October-D.
    17. Michael Chasukwa & Dan Banik, 2019. "Bypassing Government: Aid Effectiveness and Malawi’s Local Development Fund," Politics and Governance, Cogitatio Press, vol. 7(2), pages 103-116.
    18. Łukasz Marć, 2017. "The Impact of Aid on Total Government Expenditures: New Evidence on Fungibility," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 627-663, August.
    19. Heyneman, Stephen P. & Lee, Bommi, 2016. "International organizations and the future of education assistance," International Journal of Educational Development, Elsevier, vol. 48(C), pages 9-22.

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