Development economics2

Part 2: Aid, policy and economic growth

In part 2 you will analyze issues to do with aid, policy and growth, using cross-country macro data. These data stored in the Stata file [url removed, login to view], have been analyzed in the following article:

Easterly, W., Levine, R., Roodman, D. (2004), “Aid, Policies and Growth: Comment,”, American Economic Review, 94(3): 774-780,

which is a comment on:

Burnside, C., Dollar, D. (2000), “Aid, Policies, and Growth.” American Economic Review, 90(4): 847- 868.

It is important that you note the distinction between the variables defined by Burnside-Dollar (these start with bd, e.g. bdssa is the dummy for Sub-Saharan Africa in the BD dataset) and those defined by Easterly-Levine-Roodman (these start with elr, e.g. elrssa is the dummy for Sub-Saharan Africa in the ELR dataset). Thus, when we replicate the analysis in BD we should use the variables starting with bd, and when we replicate the analysis in ELR we should use the variables starting with elr.


a) Describe the dataset [url removed, login to view] – e.g. how many countries are included, what time periods, what variables?

b) Compare Sub-Saharan Africa (SSA with the rest of the world (RoW), with respect to the level and growth of per capita GDP using the BD measures (bdgdp an bdgdpg, respectively). Is there any evidence that SSA has been “catching up” with RoW with respect to per capita GDP over the sample period?

c) How is the Burnside-Dollar measure of aid defined? Calculate the sample mean, median, and standard deviation of this variable for the entire data set, and for the subsample of countries in Sub-Saharan Africa. Do you think the numbers obtained are sensible (i.e. not obviously completely wrong)?

d) How is the Burnside-Dollar measure of policy defined? Is the variable correlated with aid? Interpret your finding.

e) Is aid correlated with per capita GDP? Is aid correlated with the growth rate in per capita GDP? Do you think you are learning anything about the casual effect of aid onto either the level or the growth of income from these correlations?

f) Replicate the OLS results shown in Easterly-Levine-Roodman, Table 1, column 1 (these results are the same as those shown in BD, Table 4, column 5 OLS).

g) Interpret the estimated coefficients on aid and aid*policy obtained in (g).

h) Interpret the estimated coefficients, obtained in (f), on Sub-Saharan Africa.

i) According to the results obtained in (f), what would be the effect on economic growth (in

percentage points) of an increase in aid from 1% of GDP to 2% of GDP, for a country with

“poor”, “average” and “good” policies respectively?

j) Replicate the OLS results shown in Easterly-Levine-Roodman, Table 1, column 2. Interpret the results on aid and aid*policy. What role does aid play for growth?

k) Why are the results in (f) so different from those in (j)? Which set of results should we believe, and why?

All results i.e graphs and tables shall be presented in a word document together with an explanation. The data set file is appended.

Skills: Excel, Research Writing, Statistical Analysis, Statistics, Word

See more: why we use graphs, why use graphs, why is analysis important, why do we use graphs, how to do an article analysis, how many graphs are there, graphs problems, excel macro to word, excel e learning, e learning excel, do anything for a dollar, anything for a dollar, american income, windows development experienced hourly rate, flash development ukraine hourly rate, software development man month rate, web development netherlands hour rate, zen cart fedex quote rate returned wrong currency, free work rate sample gmat problems, blackberry custom application development hourly rate, hourly rate web designer part time, wrong billing time a2billing, security problems site development

About the Employer:
( 2 reviews ) Kungsbacka, Sweden

Project ID: #7740778

Awarded to:


Hello, am sure i can help you in completing your development economics [login to view URL] message me so as to discuss further on the [login to view URL]

€147 EUR in 3 days
(105 Reviews)

4 freelancers are bidding on average €299 for this job


A+++ paper.Hi.I am a champion in [login to view URL] contact me asap and I will gurantee you A+++ paper .Thank you .

€100 EUR in 3 days
(223 Reviews)

Dear Employer; I saw your project and can do it as required. I'm ready to start your job once I get all required information. If you like than can we discuss further. I'll be waiting for your positive response. I'm More

€800 EUR in 10 days
(11 Reviews)

Dear Client, Are you looking for an honest, credible and reliable writer? Are you looking to get a good grade and get the best value for your money? Then welcome on board to one of the most concerned writer. I have More

€95 EUR in 3 days
(26 Reviews)

Hello You will be provided quality work on time with no grammatical mistakes and error free. Looking forward to hear from you. Thank you.

€155 EUR in 3 days
(4 Reviews)

hello I did my PhD in statistic and i do have experience with similar projects, i would love to work on it, Lets discus it further via chat Thanks Kind regards Robin

€421 EUR in 3 days
(0 Reviews)