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Effective Development Aid: Selectivity, Proliferation and Fragmentation, and the Growth Impact of Development Assistance

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  • Kihara, Takashi

    (Asian Development Bank Institute)

Abstract

This paper examines several indicators of effective development aid, focusing on the contributions of major bilateral donors. The empirical analyses of selectivity for effective aid delivery revealed that, taking a long-term and regional perspective, some major donors including Japan have been as selective in delivering their aid as some countries well-known for their selective aid delivery, such as Denmark. Japan has provided higher aid for the countries with better policy and governance, and higher grant aid for the countries with lower income, particularly in Sub-Saharan Africa.

Suggested Citation

  • Kihara, Takashi, 2012. "Effective Development Aid: Selectivity, Proliferation and Fragmentation, and the Growth Impact of Development Assistance," ADBI Working Papers 342, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0342
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    References listed on IDEAS

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    1. David Roodman, 2006. "Aid Project Proliferation and Absorptive Capacity," WIDER Working Paper Series RP2006-04, World Institute for Development Economic Research (UNU-WIDER).
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    3. Knack, Stephen & Rahman, Aminur, 2007. "Donor fragmentation and bureaucratic quality in aid recipients," Journal of Development Economics, Elsevier, vol. 83(1), pages 176-197, May.
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    5. Arnab Acharya & Ana Teresa Fuzzo de Lima & Mick Moore, 2006. "Proliferation and fragmentation: Transactions costs and the value of aid," Journal of Development Studies, Taylor & Francis Journals, vol. 42(1), pages 1-21.
    6. Steve Radelet, 2006. "A Primer on Foreign Aid," Working Papers 92, Center for Global Development.
    7. Burnside, Craig & Dollar, David, 2004. "Aid, policies, and growth : revisiting the evidence," Policy Research Working Paper Series 3251, The World Bank.
    8. David Roodman, 2006. "Competitive Proliferation of Aid Projects: A Model," Working Papers 89, Center for Global Development.
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    Cited by:

    1. Furukawa, Mitsuaki & Mikami, Satoru, 2014. "Is Country-system-based Aid Really Better than Project-based Aid? Evidence from Rural Water Supply Management in Uganda," Working Papers 64, JICA Research Institute.
    2. Mitsuaki Furukawa, 2018. "Management of the international development aid system: The Case of Tanzania," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 270-284, March.
    3. Kim, Sang-Kee & Kim, Young-Han, 2016. "Is tied aid bad for the recipient countries?," Economic Modelling, Elsevier, vol. 53(C), pages 289-301.
    4. Furukawa, Mitsuaki, 2014. "Aid Fragmentation and Effectiveness for Infant and Child Mortality and Primary School Completion," Working Papers 83, JICA Research Institute.

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    More about this item

    Keywords

    development aid; official development assistance; donor proliferation; aid fragmentation;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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