A structural analysis of foreign aid to ten Mediterranean countries
AbstractAlthough the literature on aid effectiveness is vast, most of it is based on cross-country studies and does not address the Mediterranean countries as a especial group. To fill this gap, this paper describes the main structural characteristics of overseas development assistance (ODA). ODA is analyzed by country, by donor, and by sector for 1960-2007 in ten Mediterranean countries. Different patterns among recipient countries are found, but a proliferation and concentration of donors is confirmed. A positive correlation between shocks in GDP and ODA is found when the whole sample of countries is analyzed, but when the Mediterranean economies are individually considered, the pro-cyclicality of the ODA is not confirmed, except in the case of Lebanon. FDI, remittances and ODA flows are compared. The three variables are positively correlated. ODA and remittances are indeed less volatile than FDI flows. But, whereas remittances are stable and strategic to Egypt, Lebanon and Turkey, ODA flows to Syria and the Palestinian territories are higher than remittances in volume, but more volatile. Egypt and Turkey are the main destinations of FDI to the region. Finally, it is shown that ODA does not offset the shocks of FDI or remittances.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17865.
Date of creation: Feb 2009
Date of revision:
aid; FDI; pro-cyclicality; remittances; volatility;
Find related papers by JEL classification:
- F35 - International Economics - - International Finance - - - Foreign Aid
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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.:
- David Fielding & George Mavrotas, 2008. "Aid Volatility and Donor-Recipient Characteristics in 'Difficult Partnership Countries'," Economica, London School of Economics and Political Science, vol. 75(299), pages 481-494, 08.
- Agénor, Pierre-Richard & Aizenman, Joshua, 2010.
"Aid volatility and poverty traps,"
Journal of Development Economics,
Elsevier, vol. 91(1), pages 1-7, January.
- Emmanuel Frot & Javier Santiso, 2008. "Development Aid and Portfolio Funds: Trends, Volatility and Fragmentation," OECD Development Centre Working Papers 275, OECD Publishing.
- Eduardo Borensztein & Julia Cagé & Daniel Cohen & Cécile Valadier, 2008. "Aid Volatility and Macro Risks in Low-Income Countries," OECD Development Centre Working Papers 273, OECD Publishing.
- Eric Neumayer, 2003. "What Factors Determine the Allocation of Aid by Arab Countries and Multilateral Agencies?," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 134-147.
- Ravallion, Martin, 2001.
"Growth, Inequality and Poverty: Looking Beyond Averages,"
Elsevier, vol. 29(11), pages 1803-1815, November.
- Ravallion, Martin, 2001. "Growth, inequality, and poverty : looking beyond averages," Policy Research Working Paper Series 2558, The World Bank.
- Michel A. Robe & Stephane Pallage, 2000.
"Foreign Aid And The Business Cycle,"
Computing in Economics and Finance 2000
107, Society for Computational Economics.
- Ale Bulir & A. Javier Hamann, 2003. "Aid Volatility: An Empirical Assessment," IMF Staff Papers, Palgrave Macmillan, vol. 50(1), pages 4.
- Rene Teboul & Emmanuelle Moustier, 2001. "Foreign aid and economic growth: the case of the countries south of the Mediterranean," Applied Economics Letters, Taylor & Francis Journals, vol. 8(3), pages 187-190.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.