The Aid-Growth Relationship Revisited: A Bibliometric Analysis of ODA, Infrastructure Channels, Trade, and FDI

Abstract

Role of Official Development Assistance (ODA) in economic growth, has received extensive academic attention over the past decades and more so recently. The effectiveness of ODA in promoting economic growth has been one of the most extensively debated issues in development economics. Although the aid-growth nexus is widely discussed in the literature, there is no consensus and empirical findings remain inconclusive. This study revisits the aid-growth relationship using a bibliometric analysis with a specific focus on aid effectiveness in promoting trade, FDI and infrastructure as the key transmission channel. The analysis includes a total of 1,122 research documents between 1983-2024, offering a comprehensive dataset for evaluating the evolution of the field. A significant finding is that the literature has been shifting from aggregate growth parameters towards sectoral allocation and role of institutions. The study highlights emerging research directions focused on infrastructure transmission channels, absorptive capacity, and climate finance integration. The findings reveal that global discourse emphasise institutional quality and conditionality as key determinants of aid effectiveness. The paper contributes to the literature by bridging global theoretical perspectives with country-specific empirical realities. The results indicate that aid effectiveness is highly conditional upon institutional quality, absorptive capacity, and alignment with domestic policy priorities.