02079cas a2200253 a 4500 AALejournalIMF003668 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451861464 1018-5941 BD-DhAAL BD-DhAAL Rajan, Raghuram. Aid and Growth : What Does the Cross-Country Evidence Really Show? / Raghuram Rajan, Arvind Subramanian. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (48 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We examine the effects of aid on growth-- in cross-sectional and panel data--after correcting for the bias that aid typically goes to poorer countries, or to countries after poor performance. Even after this correction, we find little robust evidence of a positive (or negative) relationship between aid inflows into a country and its economic growth. We also find no evidence that aid works better in better policy or geographical environments, or that certain forms of aid work better than others. Our findings, which relate to the past, do not imply that aid cannot be beneficial in the future. But they do suggest that for aid to be effective in the future, the aid apparatus will have to be rethought. Our findings raise the question: what aspects of aid offset what ought to be the indisputable growth enhancing effects of resource transfers? Thus, our findings support efforts under way at national and international levels to understand and improve aid effectiveness. Mode of access: Internet Subramanian, Arvind. IMF Working Papers; Working Paper ; No. 2005/127 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/127/001.2005.issue-127-en.xml IMF e-Library