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The Determinants of Aid in the Post-Cold War Era

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Author Info
Subhayu Bandyopadhyay (Department of Economics, West Virginia University, and IZA, Bonn)
Howard J. Wall (Federal Reserve Bank of St . Louis)

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Abstract

This paper estimates the responsiveness of aid to recipient countries’ economic and physical needs, civil/political rights, and government effectiveness. We look exclusively at the post-Cold War era and control for the political, strategic, and other considerations of donors with fixed effects. In general, we find that aid and per capita income were negatively related, while aid was positively related with infant mortality, rights, and government effectiveness.

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File URL: http://www.be.wvu.edu/div/econ//work/pdf_files/06-14.pdf
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File Function: First version, April 2006
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Publisher Info
Paper provided by Department of Economics, West Virginia University in its series Working Papers with number 06-14.

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Length: 25 pages
Date of creation: 2006
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Handle: RePEc:wvu:wpaper:06-14

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  1. Kosack, Stephen, 2003. "Effective Aid: How Democracy Allows Development Aid to Improve the Quality of Life," World Development, Elsevier, vol. 31(1), pages 1-22, January. [Downloadable!] (restricted)
  2. William Easterly & Ross Levine & David Roodman, 2004. "Aid, Policies, and Growth: Comment," American Economic Review, American Economic Association, vol. 94(3), pages 774-780, June. [Downloadable!]
  3. Craig Burnside & David Dollar, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September. [Downloadable!] (restricted)
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  4. Maizels, Alfred & Nissanke, Machiko K., 1984. "Motivations for aid to developing countries," World Development, Elsevier, vol. 12(9), pages 879-900, September. [Downloadable!] (restricted)
  5. Alberto Alesina & Beatrice Weder, 1999. "Do Corrupt Governments Receive Less Foreign Aid?," NBER Working Papers 7108, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Eric Neumayer, 2003. "Do Human Rights Matter in Bilateral Aid Allocation? A Quantitative Analysis of 21 Donor Countries," Social Science Quarterly, The Southwestern Social Science Association, vol. 84(3), pages 650-666. [Downloadable!] (restricted)
  7. Trumbull, William N & Wall, Howard J, 1994. "Estimating Aid-Allocation Criteria with Panel Data," Economic Journal, Royal Economic Society, vol. 104(425), pages 876-82, July. [Downloadable!] (restricted)
  8. Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February. [Downloadable!] (restricted)
  9. Raghuram Rajan & Arvind Subramanian, 2005. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," IMF Working Papers 05/127, International Monetary Fund. [Downloadable!]
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  10. Wall, Howard J., 1995. "The allocation of official development assistance," Journal of Policy Modeling, Elsevier, vol. 17(3), pages 307-314, June. [Downloadable!] (restricted)
  11. Alesina, Alberto & Dollar, David, 2000. " Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March. [Downloadable!] (restricted)
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  12. Dowling, J. M. & Hiemenz, Ulrich, 1985. "Biases in the allocation of foreign aid: Some new evidence," World Development, Elsevier, vol. 13(4), pages 535-541, April. [Downloadable!] (restricted)
  13. Burnside, Craig & Dollar, David, 2004. "Aid, policies, and growth : revisiting the evidence," Policy Research Working Paper Series 3251, The World Bank. [Downloadable!]
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  1. Javed Younas & Subhayu Bandyopadhyay, 2009. "Do donors care about declining trade revenue from liberalization? an analysis of bilateral aid allocation," Review, Federal Reserve Bank of St. Louis, issue May, pages 141-154. [Downloadable!]
  2. Hendrik Wolff & Howard Chong & Maximilian Auffhammer, 2008. "Consequences of Data Error in Aggregate Indicators: Evidence from the Human Development Index," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 1051, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
    Other versions:
  3. Fleck, Robert K. & Kilby, Christopher, 2009. "Changing Aid Regimes? U.S. Foreign Aid from the Cold War to the War on Terror," Villanova School of Business Department of Economics and Statistics Working Paper Series 1, Villanova School of Business Department of Economics and Statistics. [Downloadable!]
  4. Fumitaka Furuoka, 2008. "A Dynamic Model of Foreign Aid Allocation," Economics Bulletin, Economics Bulletin, vol. 15(8), pages 1-13. [Downloadable!]
  5. Hendrik Wolff & Howard Chong & Maximilian Auffhammer, 2008. "Consequences of Data Error in Aggregate Indicators," Working Papers UWEC-2008-10, University of Washington, Department of Economics. [Downloadable!]
  6. Wolff, Hendrik & Chong, Howard & Auffhammer, Maximilian, 2009. "Human Development Index: Are Developing Countries Misclassified? (former title: "Consequences of Data Error in Aggregate Indicators: Evidence from the Human Development Index)," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49763, Agricultural and Applied Economics Association. [Downloadable!]
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