IDEAS home Printed from https://ideas.repec.org/p/een/appswp/5.30.html
   My bibliography  Save this paper

Aid Volatility: Is It a Problem in Tuvalu?

Author

Listed:
  • Letasi Lulai

Abstract

Empirical evidence on aid volatility shows that it adversely impacts recipient countries. This study seeks to find if aid volatility matters in Tuvalu—a small aid recipient country in the Pacific. The study finds that, with a coefficient of variation of 0.49, aid volatility in Tuvalu is significant. It is also found that project aid is more volatile than aid that goes to budget support and routine programs such as scholarships. Aid volatility results in incomplete projects, high transaction costs, ‘Dutch disease’ and fiscal planning problems. To manage the adverse impacts of aid volatility, Tuvalu needs to strengthen its Consolidated Investment Fund to buffer for any disruptions in aid disbursements, provide a sound policy and institutional climate, target aid to budget support and programs instead of specific projects, and implement large infrastructure projects in phases.

Suggested Citation

  • Letasi Lulai, 2013. "Aid Volatility: Is It a Problem in Tuvalu?," Asia and the Pacific Policy Studies 5.30, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:appswp:5.30
    as

    Download full text from publisher

    File URL: http://onlinelibrary.wiley.com/doi/10.1002/app5.30/pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    aid volatility; foreign aid; coefficient of variation; donors; Tuvalu;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:een:appswp:5.30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sung Lee (email available below). General contact details of provider: https://edirc.repec.org/data/asanuau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.