Decoding the aid-poverty trap: a comprehensive review of theories and evidence

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Comprehensive literature review analyzes aid-poverty nexus and highlights blended finance and RBF, indicating their potential impact.

The aid-poverty nexus remains inconclusive, presenting challenges to effective economic development.
Innovative models like blended finance and RBF have emerged as promising solutions to improve aid effectiveness.
Literature indicates that despite significant aid flows, traditional aid mechanisms face numerous persistent hurdles.
This comprehensive review employs an integrative literature review framework to assess theories and empirics.

Deepa Narayan (2025) studied this question.

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