CEU Electronic Theses and Dissertations, 2009
| Author | Aladysheva, Anastasia Sergeyevna |
|---|---|
| Title | U.S. Aid and Economic Growth in Low- and Middle-Income Countries: The Impact of U.N. Security Council Membership |
| Summary | The central objective of this thesis is to re-examine the relationship between U.S. foreign aid and growth of per capita GDP in low- and middle-income countries. Using data from 139 countries covering 61 years, the OLS estimation shows that there is no effect of aid on growth. Controlling for endogeneity by introducing U.N. Security Council membership as an instrumental variable for aid, 2SLS estimation supports this conclusion. The main implication of these results is that the U.S. allocates aid strategically and not just for the development purposes. Moreover, the recipient countries are constrained by the numerous economic, political and institutional factors that impede their development and growth. This result does not suggest that aid cannot be efficiently allocated in the future, but important steps should be made by the governments of the recipient countries as well as the donors to reduce the influence of these constraints. |
| Supervisor | Koren, Miklos |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2009/aladysheva_anastasia.pdf |
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