Your development or mine? Effects of donor-recipient cultural differences on the aid-growth nexus

Most development paradigms are not adjusted for local cultures. * Aid to culturally distant countries can result in forgone growth effects. * The estimated loss due to cultural distance is 0.2 percentage point, on average. * Leaders' western education can benefit the effectiveness of aid in a long run. * The estimated gain from leaders' western education is 0.3 percentage point. Development aid from the West may lead to adverse growth effects in the global South due to the neglected cultural differences between development aid (paradigm) providers and recipients. I test this hypothesis empiric... Mehr ...