Aid Effectiveness, Policy, and Reform

The effectiveness of foreign aid in developing countries is one of the most controversial topics in the development literature. In particular, issues relating to the link between aid and growth, whether aid works better when good policies and reforms are undertaken, and how aid should be allocated have been intensely debated by economists and policy makers. Developing countries continue to receive large amounts of foreign aid every year and the controversies surrounding aid remain strong. This dissertation reexamines the links between aid, growth, policies, and economic reforms in aid- receiving countries and sheds light on some prevailing controversies.