The search for the key: Aid, investment and policies in Africa

David Dollar, William Easterly

    Research output: Contribution to journalArticlepeer-review


    The traditional aid-to-investment-to growth linkages are not very robust, especially for African economies. Aid does not necessarily finance investment and investment does not necessarily promote growth. Differences in economic policy, on the other hand, can explain much of the difference in growth performances. Furthermore, domestic politics rather than aid or conditionality has been the main determinant of policy reform. Where societies and governments have succeeded in putting growth-enhancing policies into place, aid has provided useful support. The combination of good policies and aid has created a productive environment for private investment and growth.

    Original languageEnglish (US)
    Pages (from-to)546-577
    Number of pages32
    JournalJournal of African Economies
    Issue number4
    StatePublished - 1999

    ASJC Scopus subject areas

    • Development
    • Economics and Econometrics


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