THE EFFECT OF SAVINGS AND FOREIGN AID ON NATIONAL GROWTH RATES,
RAND CORP SANTA MONICA CALIF
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The effect of our foreign aid program on the economic growth rates of recipient nations is a subject of controversy. Moreover, it is not clear which of the possible techniques of analysis, if any, will help resolve the issue. The main aim of this study is to shed some light on the subject through the use of a macro-analytic technique. Various factors that affect growth rates are analyzed in order to estimate the contribution of foreign aid to economic growth, and to provide a method for identifying those countries that seem most likely to benefit from aid.