Master of Arts
Department or Program
The aid-growth relationship has been reviewed under various macroeconomic policy environments. This paper analyzes similarities and differences in the sources of data, types of data, and various types of methodologies used in some of the most recent and widely debated literature regarding the relationship between foreign aid and economic growth under various fiscal, monetary, and trade policies. Different studies have ended up with different outcomes. Some studies find positive aid-growth relationship under good policy environment; some find non-existent aid-growth relationship whereas some others find positive aid-growth relationship without being conditional on any kind of policy.