Publication

Using a study of 51 African countries and covering the period 1980 to 2012, this paper examines whether aid and institutional quality factors have an effect on economic growth. The authors find that aid has a positive impact on growth and that institutional quality is not essential for aid to have this impact. The authors then test whether aid facilitates political business cycles. They find that, by guaranteeing support to incumbent governments, donors do unwittingly instigate such cycles.