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Aid Effectiveness Revisited: Comparative Studies of Modalities of Aid to Asia and Africa

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  • Hiroyuki Hino

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Atsushi Iimi

    (The World Bank)

Abstract

This paper provides a variety of evidence that shows that in Asia, aid leveraged private investment in the long run, while in Africa the correlation between aid and domestic investment was at best ambiguous. Aid in Africa was diametrically opposite to that of Asia in terms of the amounts the countries received, the sector compositions, the size of individual projects, and the intensity of donor involvement. The sharp contrast in aid effectiveness between Asia and Africa could be attributed at least in part to those differences in the modality of aid delivery. Based on the above analysis, the paper concludes with a few suggestions that could link aid more closely to private investment, and avoid pitfalls that Africa experienced.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp218.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 218.

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Length: 50 pages
Date of creation: Mar 2008
Date of revision:
Handle: RePEc:kob:dpaper:218

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Keywords: Official development assistance; Aid effectiveness; Foreign direct investment; East Asia; Sub-Saharan Africa;

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References

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