Document Type

Capstone Project

Publication Date



Stevenson Center, Foreign Aid, Economic Development


This paper examines the relationship between economic growth and aid receipts per capita in a post-Soviet world. Utilizing economic growth models and assumptions developed by Burnside and Dollar (2000), I find that general sources of foreign aid are detrimental to a country's economic growth. I find that net ODA per capita acts as a substitute for local government investment in pro-growth policies. As such, foreign aid should only be used in targeted and specific cases.