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Do Aid Donors Specialize and Coordinate within Recipient Countries? The case of Malawi

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  • Peter Nunnenkamp
  • Albena Sotirova
  • Rainer Thiele

Abstract

Acknowledging that aid proliferation and a lack of coordination impair aid effectiveness, donors have repeatedly promised to specialize and better coordinate their aid activities, most notably in the Paris Declaration of 2005. We exploit geocoded aid data from Malawi to assess whether the country's bilateral and multilateral donors have acted accordingly at the district and sector level. We do not find compelling evidence for increased aid specialization after the Paris Declaration, and the regional division of labor among donors may even have deteriorated. Our within-country evidence thus broadly corroborates what previous studies found at the national level of recipient countries.
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Suggested Citation

  • Peter Nunnenkamp & Albena Sotirova & Rainer Thiele, 2016. "Do Aid Donors Specialize and Coordinate within Recipient Countries? The case of Malawi," Development Policy Review, Overseas Development Institute, vol. 34(6), pages 831-849, November.
  • Handle: RePEc:bla:devpol:v:34:y:2016:i:6:p:831-849
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    File URL: http://hdl.handle.net/10.1111/dpr.12186
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    References listed on IDEAS

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    1. Andreas Fuchs & Peter Nunnenkamp & Hannes Öhler, 2015. "Why Donors of Foreign Aid Do Not Coordinate: The Role of Competition for Export Markets and Political Support," The World Economy, Wiley Blackwell, vol. 38(2), pages 255-285, February.
    2. Bigsten, Arne & Tengstam, Sven, 2015. "International Coordination and the Effectiveness of Aid," World Development, Elsevier, vol. 69(C), pages 75-85.
    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.
    4. Peter Nunnenkamp & Hannes Öhler & Rainer Thiele, 2013. "Donor coordination and specialization: did the Paris Declaration make a difference?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(3), pages 537-563, September.
    5. Sumner, Andy, 2012. "Where Do The Poor Live?," World Development, Elsevier, vol. 40(5), pages 865-877.
    6. Hannes Öhler & Peter Nunnenkamp, 2014. "Needs-Based Targeting or Favoritism? The Regional Allocation of Multilateral Aid within Recipient Countries," Kyklos, Wiley Blackwell, vol. 67(3), pages 420-446, August.
    7. 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.
    8. Findley, Michael G. & Powell, Josh & Strandow, Daniel & Tanner, Jeff, 2011. "The Localized Geography of Foreign Aid: A New Dataset and Application to Violent Armed Conflict," World Development, Elsevier, vol. 39(11), pages 1995-2009.
    9. Iñaki Aldasoro & Peter Nunnenkamp & Rainer Thiele, 2010. "Less aid proliferation and more donor coordination? The wide gap between words and deeds," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 920-940.
    10. Kimura, Hidemi & Mori, Yuko & Sawada, Yasuyuki, 2012. "Aid Proliferation and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 40(1), pages 1-10.
    11. Heidi Tavakoli & Gregory Smith, 2013. "Back under the Microscope: Insights from Evidence on Budget Support," Development Policy Review, Overseas Development Institute, vol. 31(1), pages 59-74, January.
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    1. repec:eee:wdevel:v:103:y:2018:i:c:p:133-148 is not listed on IDEAS
    2. repec:spr:revint:v:12:y:2017:i:2:d:10.1007_s11558-017-9270-7 is not listed on IDEAS

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    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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