Development Effectiveness of Foreign Assistance (original) (raw)

International aid is given in order to generate economic growth and development in developing countries. The theoretical and empirical research on aidgrowth effects are extensive and multidimensional. Studies of aid effectiveness are very important because they address basis question: Is foreign aid the basic remedy for economic growth and poverty reduction in poor aid-recipient countries? However, the results of aid effectiveness are ambiguous. They depend on many different factors. Among them, the main are differences in models and estimation techniques and differences in countries and periods considered in the studies.