Can donor coordination solve the aid proliferation problem?
AbstractWe augment Holmstrom’s (1982) team production model in the context of aid effectiveness. In addition, we show how donor proliferation leads to inefficient supply of aid in the recipient country because of the free-riding problem faced by the donors. Our empirical findings support the theoretical prediction with regard to donor proliferation. However, this raises the question whether the current efforts in the international aid community with regard to donor coordination can effectively solve the aid proliferation problem.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 116 (2012)
Issue (Month): 3 ()
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Web page: http://www.elsevier.com/locate/ecolet
Aid proliferation; Donor coordination; Free-rider problem;
Other versions of this item:
- Rahman, Aminur & Sawada, Yasuyuki, 2010. "Can donor coordination solve the aid proliferation problem ?," Policy Research Working Paper Series 5251, The World Bank.
- F35 - International Economics - - International Finance - - - Foreign Aid
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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