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Estimating Aid-Allocation Criteria with Panel Data

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Author Info
Trumbull, William N
Wall, Howard J

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Abstract

In 1990, the net amount of economic aid, or official development assistance, to all recipients from all multilateral and bilateral sources was about $62 billion, an amount that exceeded the GDPs of Greece and Portugal. Despite the size of this yearly transfer there has been no rigors modeling and estimation of the criteria by which it occurs. As a result, there is little agreement about the extent to which ODA is allocated according to the needs of the recipient countries. The purpose of this paper is to develop a rigorous theoretical model of ODA allocation that can be used to provide consistent estimates of the importance of recipient needs. Copyright 1994 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 104 (1994)
Issue (Month): 425 (July)
Pages: 876-82
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Handle: RePEc:ecj:econjl:v:104:y:1994:i:425:p:876-82

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  1. Sajal Lahiri & Pascalis Raimondos-Møller, 1999. "Lobbying by Ethnic Groups and Aid Allocation," EPRU Working Paper Series 99-05, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics, revised Oct 2003. [Downloadable!]
    Other versions:
  2. Subhayu Bandyopadhyay & Howard J. Wall, 2007. "The determinants of aid in the post-cold war era," Review, Federal Reserve Bank of St. Louis, issue Nov, pages 533-548. [Downloadable!]
    Other versions:
  3. Espen Villanger, 2003. "Company interests and foreign aid policy: Playing donors out against each other," CMI Working Papers WP 2003:5, CMI (Chr. Michelsen Institute), Bergen, Norway. [Downloadable!]
  4. Hiroyuki Hino & Atsushi Iimi, 2008. "Aid Effectiveness Revisited: Comparative Studies of Modalities of Aid to Asia and Africa," Discussion Paper Series 218, Research Institute for Economics & Business Administration, Kobe University. [Downloadable!]
  5. Fumitaka Furuoka, 2008. "A Dynamic Model of Foreign Aid Allocation," Economics Bulletin, Economics Bulletin, vol. 15(8), pages 1-13. [Downloadable!]
  6. Kilby, Christopher, 2005. "Donor Influence in MDBs: the Case of the Asian Development Bank," Vassar College Department of Economics Working Paper Series 70, Vassar College Department of Economics. [Downloadable!]
  7. Javed Younas & Subhayu Bandyopadhyay, 2007. "Do donors care about declining trade revenues from liberalization? an analysis of aid allocation," Working Papers 2007-028, Federal Reserve Bank of St. Louis. [Downloadable!]
  8. Claessens, Stijn & Cassimon, Danny & Campenhout, Bjorn van, 2007. "Empirical Evidence on the New International Aid Architecture," Proceedings of the German Development Economics Conference, Göttingen 2007 2, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
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  9. Alberto Alesina & David Dollar, 1998. "Who Gives Foreign Aid to Whom and Why?," NBER Working Papers 6612, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  10. Craig Burnside & David Dollar, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September. [Downloadable!] (restricted)
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  11. Peter Hjertholm & Howard White, 2000. "Survey of Foreign Aid: History, Trends and Allocation," Discussion Papers 00-04, University of Copenhagen. Department of Economics. [Downloadable!]
  12. David Roodman, 2004. "An Index of Donor Performance," Development and Comp Systems 0412004, EconWPA. [Downloadable!]
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  13. J Harrigan & C Wang, 2004. "A New Approach to the Allocation of Aid Among Developing Countries: Is the USA more Selfish than the Rest?," The School of Economics Discussion Paper Series 0412, Economics, The University of Manchester. [Downloadable!]
  14. J Harrigan & C Wang & H El-Said, 2004. "The Economic and Politics Determinants of IMF and World Bank Lending in the Middle East and North Africa," The School of Economics Discussion Paper Series 0411, Economics, The University of Manchester. [Downloadable!]
    Other versions:
  15. Anwar, Mumtaz, 2006. "The Political Economy Of International Financial Institutions’ Lending To Pakistan," MPRA Paper 5601, University Library of Munich, Germany, revised 01 Dec 2006. [Downloadable!]
  16. Espen Villanger, 2003. "Company influence on foreign aid disbursement: Is conditionality credible when donors have mixed motives?," CMI Working Papers WP 2003:4, CMI (Chr. Michelsen Institute), Bergen, Norway. [Downloadable!]
  17. Svensson, Jakob, 1997. "When is Foreign Aid Policy Credible? - Aid Dependence and Conditionality," Seminar Papers 600, Stockholm University, Institute for International Economic Studies. [Downloadable!]
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