The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro- and meso-levels, recent literature doubts the ability of foreign aid to foster economic growth and development. This paper assesses the aid-growth literature and, taking inspiration from the program evaluation literature, we re-examine key hypotheses. In our findings, aid has a positive and statistically significant causal effect on growth over the long run, with confidence intervals conforming to levels suggested by growth theory. Aid remains a key tool for enhancing the development prospects of poor countries.
CITATION STYLE
Arndt, C., Jones, S., & Tarp, F. (2010). Aid, Growth, and Development: Have We Come Full Circle? Journal of Globalization and Development, 1(2). https://doi.org/10.2202/1948-1837.1121
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