The effects of foreign aid on the endowment of recipient countries with infrastructure have received surprisingly little attention in the empirical literature. This paper addresses this question by performing difference-in-difference-in-differences...

Official development assistance (ODA) and foreign direct investment (FDI) are widely perceived to be alternative means of supplementing domestic savings and promoting economic development in low and middle income countries. However, possible...

It is widely believed that foreign aid may help conflict-affected countries to recover after the termination of conflicts. However, the available empirical evidence supporting this view largely neglects the heterogeneous nature of aid. Drawing on the...

It has been intensively and controversially discussed whether ‘good’ economic policies and governance in the recipient countries render foreign aid more effective in alleviating poverty and stimulating economic growth. By contrast, the question of...

Our empirical estimations indicate that aid-for-trade granted by OECD donors strengthens the trade relations of recipient countries with other developing countries. By focusing on South-South trade we mitigate endogeneity concerns that have plagued...

Recent studies offer an ambiguous picture on the effectiveness of foreign aid in strengthening the export capacity of recipient countries. Moreover, the literature on aid for trade (AfT) has often neglected that exporters in the donor countries may...

We assess empirically whether foreign official development assistance (ODA) has been effective in alleviating HIV/AIDS epidemics, which figures prominently among the Millennium Development Goals. We employ a difference-in-difference-in-differences...

Most of the aid effectiveness literature has focused on potential growth effects of aggregate aid, with inconclusive results. Given that donors have repeatedly stressed the multidimensionality of their objectives, a more disaggregated view on aid...

We address the question of whether foreign aid helps attract foreign direct investment (FDI). This could be achieved if well targeted aid removed critical impediments to higher FDI inflows. In particular, we test the hypothesis that aid for education...

Political misalignment and greater ideological distance between donor and recipient governments may render foreign aid less effective by adding to transaction costs and eroding trust. We test this hypothesis empirically by considering the political...