IZA DP No. 4156: The Impact of Aid on Growth Revisited: Do Donor Motives Matter?
published in: Economics Letters, 2010, 107 (3), 338-340
The typical identification strategy in aid effectiveness studies assumes donor motives do not influence the impact of aid on growth. We call this homogeneity assumption into question, first constructing a model in which donor motives matter and then testing the assumption empirically.