2. Foreign Aid and Africa: Does it Increase Economic Growth? By James Mumma

3. CountriesBadly in need of aid Somewhat in need of aid Receiving lots of Aid Cell 1Cell 2 Receiving less Aid Cell 3Cell 4 Participation in Aid with Regard to Need Is Aid determined by need? Countries Badly in need of aid Somewhat in need of aid Receiving lots of Aid Cell 1Cell 2 Receiving less Aid Cell 3Cell 4

4. Selection Question? Who receives Aid? In reality aid is determined by much more than need Trade openness Democracy Civil liberties Colonial status Direct foreign investment Initial income (PPP) Population Selection Cases: Uganda, Ghana, Tanzania, Ethiopia

5. Performance Question? What causes aid to in turn lead to increased economic growth? – Measure growth using Per Capita GDP Political Status? Amount of aid received? “Political will”? Overall Dependence on Aid? As % of government expenditure? Initial size of GDP per capita?

6. The End