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A meta-analysis of development aid allocation: The effects of income level and population size

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Author Info

  • Hristos Doucouliagos
  • Martin Paldam

    ()
    (School of Economics and Management, University of Aarhus, Denmark)

Abstract

The effect on aid allocation of the income level and population size in the recipient country is analyzed. The data show that both variables have a significant and robust negative effect, but they explain only a small part of the variation. The main thrust of the paper is a meta-analysis of the large aid allocation literature, where the impact of the two variables is analyzed, controlled for a wide range of factors. By the standard meta-tests, the results converge to much the same as found in our own analysis of the data. The poverty effect is in accordance with stated policies of all donors, while the population effect appears contrary to the stated policy of all donors. The main multilateral donors do not influence this pattern. Indeed, the evidence suggests that the poverty effect is smaller for the multilateral donors. Six main hypotheses are presented to explain the population effect.

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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2007-15.

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Length: 35
Date of creation: 30 Oct 2007
Date of revision:
Handle: RePEc:aah:aarhec:2007-15

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Web page: http://www.econ.au.dk/afn/

Related research

Keywords: Aid allocation; poverty effect; population effect; meta-analysis;

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Cited by:
  1. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2006. "Does US Aid Buy UN General Assembly Votes? A Disaggregated Analysis," Kiel Working Papers 1275, Kiel Institute for the World Economy.
  2. Metzger, Laura & Nunnenkamp, Peter & Mahmoud, Toman Omar, 2010. "Is Corporate Aid Targeted to Poor and Deserving Countries? A Case Study of Nestlé's Aid Allocation," World Development, Elsevier, vol. 38(3), pages 228-243, March.
  3. Nunnenkamp, Peter & Weingarth, Janina & Weisser, Johannes, 2009. "Is NGO aid not so different after all? Comparing the allocation of Swiss aid by private and official donors," European Journal of Political Economy, Elsevier, vol. 25(4), pages 422-438, December.
  4. Ojeaga, Paul, 2012. "Foreign Aid and African Exporters: Help or Harm?," MPRA Paper 55564, University Library of Munich, Germany.
  5. Ojeaga, Paul, 2012. "Does Foreign Aid Promote Trade? Evidence from Some Selected African Countries," MPRA Paper 55580, University Library of Munich, Germany.
  6. Laura Metzger & Peter Nunnenkamp & Toman Omar Mahmoud, 2008. "Does Corporate Aid Really Help Fighting Worldwide Poverty? A Case Study of Nestlé's Aid Allocation," Kiel Working Papers 1414, Kiel Institute for the World Economy.

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