Foreign Aid, Aid Effectiveness and the New Aid Paradigm: A Review

The Role of Foreign Aid

The determinants of foreign aid

Foreign aid and taxation, revisited∗

Existing research into the relationship between foreign aid and taxation in recipient countries has both conceptual and econometric failings. Empirical results based upon observed tax revenues conflate the effect of aid upon tax structures with the effect upon flows of taxable economic activity, most notably the level of imports. The use of variables normalized by GDP is also likely to generate...

Foreign Aid and Enlightened Leaders

To study whether foreign aid fuels personal, regional and ethnic favoritism, we use satellite data on nighttime light for any region in any aid-recipient country, and we determine for each year and each country the region in which the current political leader was born. Having a panel with 22,850 regions in 91 aid recipient countries with yearly observations from 1992 to 2005, we compare the eff...

Bilateral foreign aid: How important is aid effectiveness to people for choosing countries to support?

We conduct a discrete choice experiment (DCE) to determine how important aid effectiveness is to people relative to other criteria for choosing countries to support with bilateral foreign aid. We find that aid effectiveness is important, on a par with recipient-country need as proxied by the level of hunger and malnutrition. Both criteria are more important than others.