Aid, policy and growth: the case of Nepal

Kishor Sharma, Badri Bhattarai

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    9 Citations (Scopus)
    90 Downloads (Pure)


    The debate over aid effectiveness has produced a large number of cross-sectional studies; in contrast case studies of individual countries are extremely limited, probably due to the lack of disaggregated data. This paper contributes to aid, policy and growth literature using data from Nepal, which has been one of the highest aid recipients in developing world. Our findings suggest that aid in the presence of sound economic policy contributes to growth. However, we did not find any statistical evidence to suggest that democratic governance has any impact on aid effectiveness in Nepal.
    Original languageEnglish
    Pages (from-to)895-910
    Number of pages16
    JournalJournal of Economic Issues
    Issue number4
    Publication statusPublished - Dec 2013


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