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Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and Bilateral Aid
Author:
Boriana Yontcheva null

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and
Mrs. Nadia Masud
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Series:
IMF Working Papers
Volume/Issue:
Volume 2005: Issue 100
Language:
English
Publication Date:
01 May 2005
DOI:
https://doi.org/10.5089/9781451861198.001
ISBN:
9781451861198
ISSN:
1018-5941
Pages:
31
Keywords:
WP; health expenditure; recipient country government; dependent variable; education expenditure; government effort
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper assesses the effectiveness of foreign aid in reducing poverty through its impact on human development indicators. We use a dataset of both bilateral aid and NGO aid flows. Our results show that NGO aid reduces infant mortality and does so more effectively than official bilateral aid. The impact on illiteracy is less significant. We also test whether foreign aid reduces government efforts in achieving developmental goals and find mixed evidence of a substitution effect.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund