Donors’ Openness to Immigration and the Effectiveness of Foreign Aid

Authors

• Minasyan
• A.
• Nunnenkamp
• P.

Publication Date

JEL Classification

Key Words

We argue that donors could improve the effectiveness of foreign aid by pursuing complementary and coherent non-aid policies. In particular, we hypothesize that aid from donors that are open to immigration has stronger growth effects than aid from closed donors. We estimate the aid-growth nexus in first differences to mitigate endogeneity concerns. Our empirical results support the hypothesis that donors’ openness to immigration strengthens the growth effects of foreign aid.