Can Foreign Aid Spur Growth? Empirical evidence from the developing world between 1978 and 2013
This study aims to investigate the impact of foreign aid on economic growth by using an exogenous instrument identified by Galiani et al. (2015). Researchers have through the years failed to agree on whether aid causes growth, being unable to identify an exogenous instrument that can eliminate the endogeneity problem associated with aid and growth. Galiani et al. (2015) claim to have found such an
