The impact of ODA flows on the international growth of firms

This article analyses the impact of Official Development Aid (ODA) flows on the international growth of private firms and explores the differentiated impact of bilateral and multilateral aid flows. Overall, the study shows a positive impact of ODA flows on the international growth of firms from donor countries, whether derived from direct engagement in aid-financed projects or from non-direct effects like reputational capital accrued by donor countries in recipient ones. Conversely, empirical evidence relative to the impact on firms from recipient nations is mixed and points to the existence of moderating factors, among them, the institutional strength in recipient countries.