Aid, growth, and poverty reduction: A study of the Dominican Republic from 1970--2007

This paper combines frameworks from the groundbreaking study of Burnside and Dollar (2000) and the lesser known study presented by Moriera and Bayraktar (2008) to determine whether, conditional on the fiscal policy environment, foreign aid significantly impacts economic growth and poverty reduction in the Dominican Republic. Using a database spanning 1970-2007, this paper examines the relationship between foreign aid and economic growth, poverty reduction and pre-existing fiscal policies of the middle-income nation of the Dominican Republic. The findings of this study fail to indicate a significant relationship between foreign aid and economic growth or pre-existing. The relationship between and foreign aid poverty reduction is negative.