New data, new doubts: A Comment on Burnside and Dollar’s 'Aid, Policies, and Growth'

June 2004
William Easterly, Ross Levine, and David Roodman
American Economic Review, Vol. 94, Issue 3.

New data, new doubts: A Comment on Burnside and Dollar’s 'Aid, Policies, and Growth'
The Burnside and Dollar (2000) finding that aid raises growth in a good policy environment has had an important influence on policy and academic debates. We conduct a data gathering exercise that updates their data from 1970–93 to 1970– 97, as well as filling in missing data for the original period 1970–93. We find that the BD finding is not robust to the use of this additional data.