Burnside And Dollar Definition

Burnside and Dollar examine fiscal, monetary and trade policies 56 developing countries from 1970 to 1993, and compare the relevant parameters with the amount of foreign aid that these countries receive in the years and come to the conclusion that in a favorable political environment, aid has a positive impact on economic growth. The Bank's experts explain that in countries where held "correct" policies, increased aid to 1% of GDP leads to a sustainable higher growth of 0.5%. Moreover, Burnside and Dollar found that increasing aid to poor countries, where the political environment is favorable, "would have a significant positive impact on growth in developing countries." According to them, the country carried out the "right" policy, but received