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Three Essays On Foreign Aid, Poverty And Growth., Aberra Senbeta

Dissertations

This dissertation studies how foreign aid impacts poverty and economic growth and addresses three interrelated issues: whether aid reduces poverty, how aid affects economic growth, and whether the poverty mitigating role of aid depends on the levels of poverty.

The first essay, "Does Foreign Aid Reduce Poverty?" examines the direct effects of foreign aid on poverty in developing countries using dynamic panel estimation techniques. The results suggest that aid has a significant poverty reducing effect even after controlling for average income. The findings are robust to model specification and estimation techniques. The policy implication is that poverty reduction can be …