The Effectiveness of International Aid: A Generalized Propensity Score Analysis
| dc.creator | Liu, Jing | |
| dc.creator | Florax, Raymond | |
| dc.date | 2017-04-01T19:55:39Z | |
| dc.date.accessioned | 2026-07-09T08:00:09Z | |
| dc.description | Applying the generalized propensity score matching, we estimate the effect of international aid on country GDP growth based on a panel data of 73 aid recipient countries for the period 1960-2011. The matching permits us to select a set of country-year observations that to the largest extent resemble each other, thus substantially reducing the bias caused by cross-country heterogeneity. Another advantage of this analysis is that we provide the effect of aid over a continuous range of aid-receiving intensities, rather than estimating a single average effect. The does-response function appears to be a more precise description of the effectiveness of aid on development when there exists a nonlinear relationship between the two. We find a slightly concave increasing response of economic growth to international aid intensity. The optimal ratio of aid to country GDP is found to be about 6 percent, which corresponds to a 2 percent increment in country GDP growth rate. | |
| dc.identifier | doi:10.22004/ag.econ.169804 | |
| dc.identifier | https://ageconsearch.umn.edu/record/169804/files/Liu%20and%20Florax_2014_AAEA.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/169804 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/594521 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/169804 | |
| dc.title | The Effectiveness of International Aid: A Generalized Propensity Score Analysis | |
| dc.type | Text |