01968cam a22002537 4500001000700000003000500007005001700012008004100029100002300070245013600093260006600229490004200295500001700337520060900354520037300963530006101336538007201397538003601469700002501505710004201530830007701572856003801649856002701687w11513NBER20140713172740.0140713s2005 mau||||fs|||| 000 0 eng d1 aRajan, Raghuram G.10aAid and Growthh[electronic resource]:bWhat Does the Cross-Country Evidence Really Show? /cRaghuram G. Rajan, Arvind Subramanian. aCambridge, Mass.bNational Bureau of Economic Researchc2005.1 aNBER working paper seriesvno. w11513 aAugust 2005.3 aWe examine the effects of aid on growth--in cross-sectional and panel data--after correcting for the bias that aid typically goes to poorer countries, or to countries after poor performance. Even after thiscorrection, we find little robust evidence of a positive (or negative) relationship between aid inflows into a country and its economic growth. We also find no evidence that aid works better in better policy or geographical environments, or that certain forms of aid work better than others. Our findings, which relate to the past, do not imply that aid cannot be beneficial in the future. But they3 ado suggest that for aid to be effective in the future, the aid apparatus will have to be rethought. Our findings raise the question: what aspects of aid offset what ought to be the indisputable growth enhancing effects of resource transfers? Thus, our findings support efforts under way at national and international levels to understand and improve aid effectiveness. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web.1 aSubramanian, Arvind.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w11513.4 uhttp://www.nber.org/papers/w11513 uurn:doi:10.3386/w11513