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Are there Negative Returns to Aid? a Comment
Author:
Ms. Mwanza Nkusu
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Series:
IMF Working Papers
Volume/Issue:
Volume 2004: Issue 212
Language:
English
Publication Date:
01 Nov 2004
DOI:
https://doi.org/10.5089/9781451874921.001
ISBN:
9781451874921
ISSN:
1018-5941
Pages:
12
Keywords:
WP; decreasing returns
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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Amid controversies surrounding aid effectiveness, an increasing number of empirical studies find support for the idea that aid can spur growth and that the aid-growth relationship is nonlinear. Lensink and White propose a model to illustrate the possible existence of what has been labeled an "aid Laffer curve." This short paper highlights the model's weaknesses and suggests that the model does not fulfill the purpose of illustrating the possible existence of negative returns to aid.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund