Aid, Economic Freedom, and Growth

Foreign aid has often been intended by donors to entice recipient nations into policy and institutional reforms favorable to private sector economic development. In this study, we investigate the relationship between aid and changes to economic freedom in recipient nations over the 1990-2000 decade....

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Main Authors:	Heckelman, Jac C., Knack, Stephen
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Foreign Aid F350 International Linkages to Development Role of International Organizations O190 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470
Online Access:	http://hdl.handle.net/10986/5827

id	okr-10986-5827
recordtype	oai_dc
spelling	okr-10986-58272021-04-23T14:02:23Z Aid, Economic Freedom, and Growth Heckelman, Jac C. Knack, Stephen Foreign Aid F350 International Linkages to Development Role of International Organizations O190 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Foreign aid has often been intended by donors to entice recipient nations into policy and institutional reforms favorable to private sector economic development. In this study, we investigate the relationship between aid and changes to economic freedom in recipient nations over the 1990-2000 decade. The evidence is mixed. In general, we find that foreign aid has no significant effect on economic freedom overall. However, using a hedonic approach on the different categories of economic freedom, we find that aid has still managed to contribute toward a policy and institutional environment favorable to growth, as the different categories of economic freedom improved by aid more than offset those which are harmed by aid, in terms of their impact on growth. 2012-03-30T07:34:44Z 2012-03-30T07:34:44Z 2009 Journal Article Contemporary Economic Policy 10743529 http://hdl.handle.net/10986/5827 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Foreign Aid F350 International Linkages to Development Role of International Organizations O190 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470
spellingShingle	Foreign Aid F350 International Linkages to Development Role of International Organizations O190 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Heckelman, Jac C. Knack, Stephen Aid, Economic Freedom, and Growth
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Foreign aid has often been intended by donors to entice recipient nations into policy and institutional reforms favorable to private sector economic development. In this study, we investigate the relationship between aid and changes to economic freedom in recipient nations over the 1990-2000 decade. The evidence is mixed. In general, we find that foreign aid has no significant effect on economic freedom overall. However, using a hedonic approach on the different categories of economic freedom, we find that aid has still managed to contribute toward a policy and institutional environment favorable to growth, as the different categories of economic freedom improved by aid more than offset those which are harmed by aid, in terms of their impact on growth.
format	Journal Article
author	Heckelman, Jac C. Knack, Stephen
author_facet	Heckelman, Jac C. Knack, Stephen
author_sort	Heckelman, Jac C.
title	Aid, Economic Freedom, and Growth
title_short	Aid, Economic Freedom, and Growth
title_full	Aid, Economic Freedom, and Growth
title_fullStr	Aid, Economic Freedom, and Growth
title_full_unstemmed	Aid, Economic Freedom, and Growth
title_sort	aid, economic freedom, and growth
publishDate	2012
url	http://hdl.handle.net/10986/5827
_version_	1764396455953432576

Aid, Economic Freedom, and Growth

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