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Foreign Aid's Impact On Economic Growth: Conditional On Accountable Institutions?, Anna Monique Castrillo
Foreign Aid's Impact On Economic Growth: Conditional On Accountable Institutions?, Anna Monique Castrillo
LSU Master's Theses
This paper studies the impact of foreign aid on economic growth in Latin America and the Caribbean and determines whether this relationship is conditional on institutional quality, utilizing an index of accountability. I examine whether or not accountability structures rather than fiscal policies as used in Craig Burnside and David Dollar's 2000 article “Aid, Policies, and Growth” are a better determinant for overall economic growth. Using a database spanning 1996 to 2008, this paper examines the relationship between foreign aid and economic growth in 19 Latin American and Caribbean countries and seeks a clear definition of institutional quality. The findings …