Karuna Gomanee|Oliver Morrissey|Paul Mosley|Arjan Verschoor
Aid, Pro-Poor Government Spending and Welfare
University of Liverpool|Centre for Development Economics|University of Nottingham|University of Sheffield|University of East Anglia
objective test hypothesis aid improve welfare poor part effect direct aid targeted poor part indirected via transmission channel aidfinanced public spending social services sanitation education health indirect part represented index propoor public expenditures ppe comparative data poverty levels scarce use two indicators welfare poor namely infant mortality human development index hdi use residual generated regressor obtain coefficient aid variable includes indirect effects public expenditure allocation induced aid estimation based pooled panel 39 countries period 1980 1998 obtain results support hypothesis propoor public expenditure associated increased levels welfare find evidence aid associated improved values welfare indicators aid finances propoor spending way aid potentially benefits poor