In his book The Elusive Quest for Growth, development economist William Easterly discusses the relationship between foreign aid
and investment in poor countries. He posits that to establish the effectiveness of aid in promoting investment, two tests should be passed: First, there should be a positive statistical association between aid and investment; second, aid should pass into investment 1 for 1, that is, a 1 percent (of GDP) increase in aid should result in a 1 percent (of GDP) increase in investment. Using a data set of 88 countries from 1965 to 1995, he finds that only 17 of 88 countries pass the first test, and of them, only 6 pass the second. Based on the information in the chapter, and perhaps your own reading, explain why foreign aid designed to spur investment usually does not work.
Amiable is thee answer due to the fact it starts with an A and ends with an E, thus making le answer Amiable. Good day sir/ma'am and drink some fluids for the effect of making yourself well. (hope the 1700-1800 speech made you smile)
