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The aid effectiveness literature : the sad results of 40 years of research

journal contribution
posted on 2009-01-01, 00:00 authored by Chris DoucouliagosChris Doucouliagos, M Paldam
The aid effectiveness literature (AEL) consists of empirical macroeconomic estimates of the effects of development aid. By the end of 2004, it comprised 97 econometric studies of three families of related effects. Each family has been analyzed in a separate meta-analysis. The AEL is an ideal subject for meta-analysis as it uses only a few formally similar models to estimate the same underlying effects. It is also an area with strong beliefs, often generated by altruism. When this whole literature is examined, a clear pattern emerges. After 40 years of development aid, the preponderance of the evidence indicates that aid has not been effective. We show that the distribution of results is significantly asymmetric reflecting the reluctance of the research community to publish negative results. The Dutch disease effect on exchange rates provides a plausible explanation for the observed aid ineffectiveness.

History

Journal

Journal of economic surveys

Volume

23

Issue

3

Pagination

433 - 461

Publisher

Blackwell Publishing Ltd

Location

Oxford, England

ISSN

0950-0804

eISSN

1467-6419

Language

eng

Publication classification

C1 Refereed article in a scholarly journal

Copyright notice

2009, The Authors

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