A New Database on Project Aid and Programme Aid Disbursements and a Re-examination of the Aid-Savings Nexus
نویسنده
چکیده
This paper is a contribution to the aid effectiveness literature in two important fronts. Firstly, it develops a new database for project aid and programme aid disbursements for 104 developing countries, for the period of 1973-2001. Secondly, using this new dataset and, food aid and technical assistance data from the OECD-DAC database the paper re-examines the savings displacement hypothesis. The main results of this study can be summarised as follows. Firstly, taking into account the functional classification of development aid casts doubt on the conclusion and more importantly the policy recommendation of the vast majority of the existing aid effectiveness literature. Secondly, the results suggest, overall, that project aid flows and food aid (excluding emergency and relief food aid) are associated with a reduction domestic savings. By contrast, financial programme aid and technical assistance grants do not appear to reduce domestic savings.
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