How Should Donors Give Foreign Aid? Project Aid Versus Budget Support
نویسندگان
چکیده
منابع مشابه
THE MACROECONOMICS OF FOREIGN AID TO ETHIOPIA: Project Aid versus Government Budget
Foreign aid recipient fiscal response in developing countries is studied using utility/welfare maximization principle. The underlying assumption of this function (utility/welfare can be maximized by narrowing the deviations of the actual values from their desired values subject to the constraints of finance) doesn’t capture the interplay between project aid inflows and the adjustment process of...
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Donor_s demand equations for alternative forms of aid are derived for three allocation processes: noncooperative Nash-Cournot, cooperative Lindahl, and bureaucratic. Based on OECD data for official development assistance for 1970– 2001, we apply non-nested tests to distinguish between Nash-Cournot and Lindahl reduced-form equations for 15 major donor nations. Noncooperative Nash-Cournot behavio...
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It is notoriously difficult to measure the causal impact of foreign aid on the economy. The “micro-macro paradox” (Paul Mosley 1986) renders it impossible to add up the effects of individual aid projects, since foreign aid is fungible. Thus, researchers are left to conduct cross-country analyses to capture the effect of aid on economic growth and other outcomes net of the recipient governments’...
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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.
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Since the late 1990s a selection on policy approach to aid was advocated such that more aid should be allocated to countries with good policies. A number of donors accepted this recommendation, including the World Bank, but there is little evidence that this has occurred. Donors, including the World Bank, seem no more likely to use policy and governance indicators to determine the amount of aid...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1139811