Red de Desarrollo Social de América Latina y el Caribe
Plataforma virtual para la difusión de conocimiento sobre desarrollo social

Does Aid Reduce Poverty?

 

Autor institucional : Oxford University
Autor/Autores: Juliana Yael Milovich
Fecha de publicación: Oxford University
Alcance geográfico: Mundial
Publicado en: Reino Unido
Descargar: Descargar PDF
Resumen: Fifty years of literature on aid effectiveness has so far proven inconclusive. Two main challenges still require some attention. The first is to properly identify the causal effect of aid on poverty alleviation. To address it, I exploit differences in the number of years countries have been temporary members of the United Nations Security Council as an instrument for the average amount of economic aid disbursed by the United States. The second is to obtain reliable data on poverty, which I confront by using multidimensional poverty data from the Oxford Poverty and Human Development Initiative (OPHI). For a sample of 64 developing countries, I estimate a significant relationship between higher amounts of aid received during the period 19461999 and lower Multidimensional Poverty Index (MPI) between 2000 and 2014. On the contrary, the relationship does not seem to be significant when poverty is measured from an income perspective. Alternative measures of poverty could help improve the understanding of the relationship between development aid and poverty alleviation and might also contribute to improved targeting for aid disbursements.
   

 

 

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