Gdp per capita growth and foreign aid inflow

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William Easterly (2003) in his famous graph indicated how growth in per capita GDP and aid flow went in opposite directions for most of the 1970s, 1980s, and 1990s for sub-Saharan African countries. What do you think are the reasons for the opposite relationship between GDP per capita growth and foreign aid inflow?

Reference no: EM131654142

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