Recent World Bank research has sparked a major debate about aid effectiveness and its implications for aid allocations. The main focus of attention has been the importance of good policy as a determinant of aid effectiveness and criterion for aid allocations. This paper briefly recaps the main arguments and evidence generated by Burnside/Collier/Dollar and their critics. It then focuses on the Collier/Dollar aid allocation models, subjecting them to a wider range of sensitivity tests to assess the robustness of their results. Finally, it analyses the relative efficiency of aid allocations over time and between donors.
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Paper provided by Economics and Statistics Analysis Unit (ESAU), Overseas Development Institute in its series Working Papers with number
2.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Craig Burnside & David Dollar, 2000.
"Aid, Policies, and Growth,"
American Economic Review,
American Economic Association, vol. 90(4), pages 847-868, September.
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Other versions:
Lensink, Robert & White, Howard, 1999.
"Are there negative returns to aid?,"
Research Report
99E60, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
[Downloadable!]