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Complexity Economics and Sustainable Development from Part II - A Global View of Sustainable Development
Published online by Cambridge University Press: 04 January 2024
This chapter establishes an explicit link between foreign aid inflows and development indicators classified in the multidimensional setting of the SDGs. This linkage is not a black box as it takes advantage of the model’s causal chains describing budget allocations and indicator performance. First, we create counterfactuals by removing aid flows. Hence, we can estimate aid impacts and assess their statistical significance at the indicator or country levels during the first decade of the 21st century. Second, we produce a validation exercise comparing our results with econometric evidence found in a well-known sector-level study (access and sanitation of water) using a subset of our data.
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