IDEAS home Printed from https://ideas.repec.org/p/liv/livedp/201811.html
   My bibliography  Save this paper

Does Foreign Aid Improve Gender Performance in Recipient Countries?

Author

Listed:
  • Ranjula Bali Swain
  • Supriya Garikipati

Abstract

An explicit goal of foreign aid is to promote female empowerment and gender equality in developing countries. The impact of foreign aid on these latent variables at the country level is not yet known because of various methodological impediments. We address these by using Structural Equation Models. We use data from the World Development Indicators, the World Governance Indicators and the OECDs Credit Reporting System to investigate if foreign aid has an impact on gender performance of recipient countries at the country level. Our results suggest that to observe improvement in gender performance at the macro-level, foreign aid must target the gender outcomes of interest in a clearly measurable ways.

Suggested Citation

  • Ranjula Bali Swain & Supriya Garikipati, 2018. "Does Foreign Aid Improve Gender Performance in Recipient Countries?," Working Papers 201811, University of Liverpool, Department of Economics.
    • Handle: RePEc:liv:livedp:201811
    as

    Download full text from publisher

    File URL: https://www.liverpool.ac.uk/media/livacuk/schoolofmanagement/research/economics/Does,Foreign,Aid,Improve,Gender,Performance.pdf
    File Function: First version, 2018
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Linda Kleemann & Peter Nunnenkamp & Rainer Thiele, 2016. "Gender Inequality, Female Leadership and Aid Allocation," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(3), pages 376-395, April.
    2. Dreher, Axel & Gehring, Kai & Klasen, Stephan, 2015. "Gesture Politics or Real Commitment? Gender Inequality and the Allocation of Aid," World Development, Elsevier, vol. 70(C), pages 464-480.
    3. Floro, Maria Sagrario, 1995. "Economic restructuring, gender and the allocation of time," World Development, Elsevier, vol. 23(11), pages 1913-1929, November.
    4. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    5. Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398, April.
    6. Supriya Garikipati & Camille Boudot, 2017. "To Pad or Not to Pad: Towards Better Sanitary Care for Women in Indian Slums," Journal of International Development, John Wiley & Sons, Ltd., vol. 29(1), pages 32-51, January.
    7. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, vol. 64(2), pages 547-570, April.
    8. Sam Wong, 2016. "Can Climate Finance Contribute to Gender Equity in Developing Countries?," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(3), pages 428-444, April.
    9. Stephan Klasen, 2006. "UNDP's Gender-related Measures: Some Conceptual Problems and Possible Solutions," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 7(2), pages 243-274.
    10. Karuna Gomanee & Sourafel Girma & Oliver Morrissey, 2005. "Aid, public spending and human welfare: evidence from quantile regressions," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(3), pages 299-309.
    11. Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.
    12. Robert A. Blecker & Stephanie Seguino, 2002. "Macroeconomic Effects of Reducing Gender Wage Inequality in an Export‐Oriented, Semi‐Industrialized Economy," Review of Development Economics, Wiley Blackwell, vol. 6(1), pages 103-119, February.
    13. Channing Arndt & Sam Jones & Finn Tarp, 2011. "Aid Effectiveness: Opening the Black Box," WIDER Working Paper Series wp-2011-044, World Institute for Development Economic Research (UNU-WIDER).
    14. Stephan Klasen, 2002. "Low Schooling for Girls, Slower Growth for All? Cross-Country Evidence on the Effect of Gender Inequality in Education on Economic Development," The World Bank Economic Review, World Bank, vol. 16(3), pages 345-373, December.
    15. Mina Baliamoune‐Lutz, 2016. "The Effectiveness of Foreign Aid to Women's Equality Organisations in the MENA," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(3), pages 320-341, April.
    16. Bardhan, Kalpana & Klasen, Stephan, 1999. "UNDP's Gender-Related Indices: A Critical Review," World Development, Elsevier, vol. 27(6), pages 985-1010, June.
    17. Michael A. Clemens & Steven Radelet & Rikhil R. Bhavnani & Samuel Bazzi, 2012. "Counting Chickens when they Hatch: Timing and the Effects of Aid on Growth," Economic Journal, Royal Economic Society, vol. 122(561), pages 590-617, June.
    18. Mishra, Prachi & Newhouse, David, 2009. "Does health aid matter?," Journal of Health Economics, Elsevier, vol. 28(4), pages 855-872, July.
    19. Nejat Anbarci & Monica Escaleras & Charles A. Register, 2009. "The Ill Effects of Public Sector Corruption in the Water and Sanitation Sector," Land Economics, University of Wisconsin Press, vol. 85(2), pages 363-377.
    20. Seguino, Stephanie, 2000. "Gender Inequality and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 28(7), pages 1211-1230, July.
    21. Kalaitzidakis, Pantelis & Mamuneas, Theofanis P. & Savvides, Andreas & Stengos, Thanasis, 2001. "Measures of Human Capital and Nonlinearities in Economic Growth," Journal of Economic Growth, Springer, vol. 6(3), pages 229-254, September.
    22. Caren Grown & Tony Addison & Finn Tarp, 2016. "Aid for Gender Equality and Development: Lessons and Challenges," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(3), pages 311-319, April.
    23. Paul Collier & David Dollar, 2004. "Development effectiveness: what have we learnt?," Economic Journal, Royal Economic Society, vol. 114(496), pages 244-271, June.
    24. Davis, Jennifer, 2004. "Corruption in Public Service Delivery: Experience from South Asia's Water and Sanitation Sector," World Development, Elsevier, vol. 32(1), pages 53-71, January.
    25. Jeni Klugman & Lucia Hanmer & Sarah Twigg & Tazeen Hasan & Jennifer McCleary-Sills & Julieth Santamaria, 2014. "Voice and Agency : Empowering Women and Girls for Shared Prosperity," World Bank Publications - Books, The World Bank Group, number 19036, December.
    26. Stephan Klasen & Francesca Lamanna, 2009. "The Impact of Gender Inequality in Education and Employment on Economic Growth: New Evidence for a Panel of Countries," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 91-132.
    27. Gomanee, Karuna & Morrissey, Oliver & Mosley, Paul & Verschoor, Arjan, 2005. "Aid, Government Expenditure, and Aggregate Welfare," World Development, Elsevier, vol. 33(3), pages 355-370, March.
    28. World Bank, 2012. "World Development Report 2012 [Rapport sur le développement dans le monde 2012]," World Bank Publications - Books, The World Bank Group, number 4391, December.
    29. Stephan Klasen & Dana Sch�ler, 2011. "Reforming the Gender-Related Development Index and the Gender Empowerment Measure: Implementing Some Specific Proposals," Feminist Economics, Taylor & Francis Journals, vol. 17(1), pages 1-30, January.
    30. Channing Arndt & Sam Jones & Finn Tarp, 2011. "Aid Effectiveness: Opening the Black Box," WIDER Working Paper Series 044, World Institute for Development Economic Research (UNU-WIDER).
    31. Gunseli Berik & Yana van der Meulen Rodgers & Stephanie Seguino, 2009. "Feminist Economics of Inequality, Development, and Growth," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 1-33.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Danbi Chung & Jaehee Hwang, 2022. "An Economic and Social Impact of International Aid at National Level: Application of Spatial Panel Model," World, MDPI, vol. 3(3), pages 1-11, August.
    2. Fang‐Ying Su & Wan‐Ying Yang, 2023. "Gender‐focused or gender mainstreaming programmes? The gender dimension of international aid," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1874-1891, October.
    3. Raphael J. Nawrotzki & Verena Gantner & Jana Balzer & Thomas Wencker & Sabine Brüntrup-Seidemann, 2022. "Strategic Allocation of Development Projects in Post-Conflict Regions: A Gender Perspective for Colombia," Sustainability, MDPI, vol. 14(4), pages 1-26, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ndikumana, Léonce & Pickbourn, Lynda, 2013. "Impact of Sectoral Allocation of Foreign Aid on Gender equity and Human Development," WIDER Working Paper Series 066, World Institute for Development Economic Research (UNU-WIDER).
    2. Lynda Pickbourn & Léonce Ndikumana, 2013. "Impact of Sectoral Allocation of Foreign Aid on Gender Equity and Human Development," Published Studies unu_pickbourn_ndikumana, Political Economy Research Institute, University of Massachusetts at Amherst.
    3. Lynda Pickbourn & Léonce Ndikumana, 2013. "Impact of Sectoral Allocation of Foreign Aid on Gender equity and Human Development," WIDER Working Paper Series wp-2013-066, World Institute for Development Economic Research (UNU-WIDER).
    4. Dreher, Axel & Gehring, Kai & Klasen, Stephan, 2015. "Gesture Politics or Real Commitment? Gender Inequality and the Allocation of Aid," World Development, Elsevier, vol. 70(C), pages 464-480.
    5. Bandyopadhyay, Subhayu & Lahiri, Sajal & Younas, Javed, 2015. "Financing growth through foreign aid and private foreign loans: Nonlinearities and complementarities," Journal of International Money and Finance, Elsevier, vol. 56(C), pages 75-96.
    6. Danquah, M. & Ouattara, B., 2023. "Aid and social cohesion," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 118-131.
    7. Arndt, Channing & Jones, Sam & Tarp, Finn, 2015. "Assessing Foreign Aid’s Long-Run Contribution to Growth and Development," World Development, Elsevier, vol. 69(C), pages 6-18.
    8. Łukasz Marć, 2017. "The Impact of Aid on Total Government Expenditures: New Evidence on Fungibility," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 627-663, August.
    9. Fang‐Ying Su & Wan‐Ying Yang, 2023. "Gender‐focused or gender mainstreaming programmes? The gender dimension of international aid," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1874-1891, October.
    10. Potrafke, Niklas & Ursprung, Heinrich W., 2012. "Globalization and gender equality in the course of development," European Journal of Political Economy, Elsevier, vol. 28(4), pages 399-413.
    11. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    12. Patrick GUILLAUMONT, 2009. "Aid effectiveness for poverty reduction: macroeconomic overview and emerging issues," Working Papers P05, FERDI.
    13. Gaëlle Ferrant, 2014. "The Multidimensional Gender Inequalities Index (MGII): A Descriptive Analysis of Gender Inequalities Using MCA," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(2), pages 653-690, January.
    14. Joanna Wolszczak-Derlacz, 2013. "The Impact Of Gender Wage Gap On Sectoral Economic Growth – Cross-Country Approach," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(3), pages 103-122, September.
    15. Nguyen, Canh Phuc, 2021. "Gender equality and economic complexity," Economic Systems, Elsevier, vol. 45(4).
    16. Admasu Asfaw Maruta & Rajabrata Banerjee, 2021. "Does energy aid improve energy efficiency in developing countries?," Empirical Economics, Springer, vol. 61(1), pages 355-388, July.
    17. Kaya, Ilker & Kaya, Ozgur, 2020. "Foreign aid, institutional quality and government fiscal behavior in emerging economies: An empirical investigation," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 59-67.
    18. Kotsadam, Andreas & Østby, Gudrun & Rustad, Siri Aas & Tollefsen, Andreas Forø & Urdal, Henrik, 2018. "Development aid and infant mortality. Micro-level evidence from Nigeria," World Development, Elsevier, vol. 105(C), pages 59-69.
    19. Łukasz Marć, 2015. "The impact of aid on total government expenditures: New evidence on fungibility," WIDER Working Paper Series wp-2015-010, World Institute for Development Economic Research (UNU-WIDER).
    20. Dierk Herzer & Oliver Morrissey, 2009. "The Long-Run Effect of Aid on Domestic Output," Discussion Papers 09/01, University of Nottingham, CREDIT.

    More about this item

    Keywords

    foreign aid; gender performance; structural equation model;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

    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:liv:livedp:201811. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Rachel Slater (email available below). General contact details of provider: https://edirc.repec.org/data/mslivuk.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.