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April 1, 2026Open Access

Aid, Institutions, and Growth: Building Institutions Matters for Development Effectiveness

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Authors

YHYumeka HiranoJapan Society for the Promotion of Science

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Implication

Cross-country analysis demonstrates aid's impact on growth in improving institutional quality countries, suggesting capacity building is essential.

Key Points

  • The study aims to assess how institutional quality affects the relationship between aid and economic growth.
  • Conducted cross-country analyses using sectoral data of economic and social aid.
  • Analyzed unbalanced panel data from 183 growth spells across 60 countries.
  • Compared the impact of sectoral aid data versus aggregate aid data.
  • Economic aid promotes growth independently of policy or institutional conditions.
  • Aid impacts are significant in countries improving their institutional quality.
  • Countries with low initial institutional quality can still achieve higher growth through aid.

Cite This Study

Yumeka Hirano (2013) studied this question.

synapsesocial.com/papers/69cd7b275652765b073a8e72https://doi.org/10.18999/disp.192.1
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Revisiting the nexus between development aid, institutions, and growth: A global evidence2024 · 1 citations
  2. 2The role of institutions in shaping the growth-aid relationship2024 · 2 citations
  3. 3Does Aid Harm or Benefit Institutional Quality? Time Heals All Wounds2026
  4. 4Institutional governance and aid effectiveness in achieving the sustainable development goals: Cross-country evidence from IDA-eligible countries2026
  5. 5Institutions and economic growth: the role of financial inclusion, public spending on education and the military2024 · 3 citations