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Modelling the Allocation of Australian Bilateral Aid: A Two-Part Sample Selection Approach

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  • McGillivray, Mark
  • Oczkowski, Edward

Abstract

This paper focuses on the allocation of Australian bilateral aid to developing countries. It simultaneously models the determination of potential recipients' eligibility for Australian aid and the amounts of aid that eligible countries receive. A variant of the econometric technique developed by L. F. Lee and G. S. Maddala (1985) is utilized. The results obtained indicate that the decisions underlying the allocation of Australian bilateral aid generally seem consistent with the humanitarian, commercial, political, and strategic motives underlying the aid program as a whole. Copyright 1991 by The Economic Society of Australia.

Suggested Citation

  • McGillivray, Mark & Oczkowski, Edward, 1991. "Modelling the Allocation of Australian Bilateral Aid: A Two-Part Sample Selection Approach," The Economic Record, The Economic Society of Australia, vol. 67(197), pages 147-152, June.
  • Handle: RePEc:bla:ecorec:v:67:y:1991:i:197:p:147-52
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    Cited by:

    1. Mark McGillivray, 2005. "What determines African bilateral aid receipts?," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 1003-1018.
    2. Harrigan, Jane & Wang, Chengang & El-Said, Hamed, 2006. "The economic and political determinants of IMF and world bank lending in the Middle East and North Africa," World Development, Elsevier, vol. 34(2), pages 247-270, February.
    3. Rahman, Md Saifur & Giessen, Lukas, 2017. "Formal and Informal Interests of Donors to Allocate Aid: Spending Patterns of USAID, GIZ, and EU Forest Development Policy in Bangladesh," World Development, Elsevier, vol. 94(C), pages 250-267.
    4. Mark McGillivray, 2003. "Efficacité de l'aide et sélectivité : vers un concept élargi," Revue d’économie du développement, De Boeck Université, vol. 11(4), pages 43-62.
    5. Maas, Sarah, 2009. "Evaluating the 1996 EU food aid reform: Did it really lead to better targeting?," 2009 Conference, August 16-22, 2009, Beijing, China 51618, International Association of Agricultural Economists.
    6. Odedokun, Matthew, 2003. "A Holistic Perception of Foreign Financing of Developing Countries' Private Sectors: Analysis and Description of Structure and Trends," WIDER Working Paper Series 001, World Institute for Development Economic Research (UNU-WIDER).
    7. Jean-Claude Berthélemy, 2006. "Bilateral Donors' Interest vs. Recipients' Development Motives in Aid Allocation: Do All Donors Behave the Same?," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 179-194, May.
    8. Akinkugbe, Oluyele, 2003. "Flow of Foreign Direct Investment to Hitherto Neglected Developing Countries," WIDER Working Paper Series 002, World Institute for Development Economic Research (UNU-WIDER).
    9. Maelan Le Goff & Kangni R Kpodar, 2011. "Do Remittances Reduce Aid Dependency?," IMF Working Papers 11/246, International Monetary Fund.
    10. Mark McGillivray, 2003. "Modelling Aid Allocation: Issues, Approaches And Results," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(1), pages 171-188, June.
    11. Berthelemy, Jean-Claude & Tichit, Ariane, 2004. "Bilateral donors' aid allocation decisions--a three-dimensional panel analysis," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 253-274.
    12. McGillivray, Mark, 2003. "Aid Effectiveness and Selectivity: Integrating Multiple Objectives into Aid Allocations," WIDER Working Paper Series 071, World Institute for Development Economic Research (UNU-WIDER).
    13. Rukmani Gounder & D. P. Doessel, 1997. "Motivation Models of Australia's Bilateral Aid Program: The Case of Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 33(3), pages 97-110.
    14. repec:vls:rojfme:v:4:y:2017:i:1:p:239-247 is not listed on IDEAS
    15. Xayavong, Vilaphonh, 2002. "A macroeconometric analysis of foreign aid in economic growth and development in least developed countries: a case study of the Lao People's Democratic Republic (1978-2001)," Dissertations-Doctoral 204910, AgEcon Search.
    16. J Harrigan & C Wang, 2004. "A New Approach to the Allocation of Aid Among Developing Countries: Is the USA more Selfish than the Rest?," The School of Economics Discussion Paper Series 0412, Economics, The University of Manchester.
    17. Harrigan, Jane & Wang, Chengang, 2011. "A New Approach to the Allocation of Aid Among Developing Countries: Is the USA Different from the Rest?," World Development, Elsevier, vol. 39(8), pages 1281-1293, August.
    18. David Fielding, 2010. "Inertia and Herding in Humanitarian Aid Decisions," Working Papers 1009, University of Otago, Department of Economics, revised Aug 2010.

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