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Foreign Aid and Market‐Liberalizing Reform

Bibliographic Data

ID9724779
AuthorsJac C Heckelman (0000-0001-7984-0181, Wake Forest University), Stephen Knack
Year2008
Volume75
Issue299
Pages524-548
Publication date2008-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2007.00623.x
OpenAlexW1991519563
LanguageEN
Citations received30
References cited47

Market‐oriented economic policies have been strongly linked to faster rates of economic growth. Foreign aid is often provided in part to encourage market‐oriented reforms. We analyse the impact of aid on market‐liberalizing policy reform, correcting for its potential endogeneity. Results indicate that higher aid slowed reform over the 1980–2000 period, as measured by a broad index of policies. Disaggregating policy into five areas, aid is associated with slower reform in some policy areas but not in others. Disaggregating by decade, the adverse impact of aid on policy reform is much more pronounced for the 1980s than for the 1990s

Economic policy · Economic reform · Economics · Endogeneity · Index (typography) · International economics · Political science · Politics · Economic Growth and Development · Fiscal Policy and Economic Growth · International Development and Aid

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Unique citing works30
Citations per year1,36
Citation span2004 - 2026 (23)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 24

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