Aid, policy, and growth: The case of Nepal

Kishor Sharma, B Bhattarai

Research output: Contribution to journalArticlepeer-review


The debate over aid effectiveness has produced a large number of crosssectional studies, while case studies of individual countries remain extremely limited, probably due to the lack of disaggregated data. This paper contributes to aid-, policy-, and growth literature using data from Nepal, a country that has been one of the highest recipients of aid in the 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 and openness impact the effectiveness of aid in Nepal.
Original languageEnglish
Pages (from-to)895-910
Number of pages16
JournalJournal of Economic Issues
Issue number4
Publication statusPublished - 2013
Externally publishedYes


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