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Foreign Aid And Economic Growth: A Post-Soviet Analysis Of Emerging Markets, Brett Michaelson
Foreign Aid And Economic Growth: A Post-Soviet Analysis Of Emerging Markets, Brett Michaelson
Stevenson Center for Community and Economic DevelopmentāStudent Research
This paper examines the relationship between economic growth and aid receipts per capita in a post-Soviet world. Utilizing economic growth models and assumptions developed by Burnside and Dollar (2000), I find that general sources of foreign aid are detrimental to a country's economic growth. I find that net ODA per capita acts as a substitute for local government investment in pro-growth policies. As such, foreign aid should only be used in targeted and specific cases.