The robust result in meta-analysis of aid effectiveness: a response to Mekasha and Tarp

Our study, Doucouliagos and Paldam (2008), has recently been critically discussed by Mekasha and Tarp (2011). In this paper we show that contrary to what they state, their study validates our basic analysis: Both papers confirm that the literature has shown that aid is of little economic importance in generating growth. M&T find some random coding errors with virtually no effect on the basic results. Furthermore, we discuss some methodological disagreements and show that their choice of the random effects model is not appropriate for the problem at hand, and that the way they use multiple MRAs contradicts the robust results reached at the basic analysis.