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Modelling the Allocation of Australian Bilaterial Aid: A Two‐Part Sample Selection Approach

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  • MARK McGILLIVRAY
  • EDWARD OCZKOWSKI

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 Lee and 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.

Suggested Citation

  • MARK McGILLIVRAY & EDWARD OCZKOWSKI, 1991. "Modelling the Allocation of Australian Bilaterial Aid: A Two‐Part Sample Selection Approach," The Economic Record, The Economic Society of Australia, vol. 67(2), pages 147-152, June.
  • Handle: RePEc:bla:ecorec:v:67:y:1991:i:2:p:147-152
    DOI: 10.1111/j.1475-4932.1991.tb02538.x
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    File URL: https://doi.org/10.1111/j.1475-4932.1991.tb02538.x
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    References listed on IDEAS

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    1. Hall, Bronwyn H., 1984. "Software for the computation of Tobit model estimates," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 215-222.
    2. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    3. Isenman, Paul, 1976. "Biases in aid allocations against poorer and larger countries," World Development, Elsevier, vol. 4(8), pages 631-641, August.
    4. Maizels, Alfred & Nissanke, Machiko K., 1984. "Motivations for aid to developing countries," World Development, Elsevier, vol. 12(9), pages 879-900, September.
    5. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
    6. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    7. Dhrymes, Phoebus J., 1986. "Limited dependent variables," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 3, chapter 27, pages 1567-1631, Elsevier.
    8. Lee, Lung-Fei & Maddala, G S, 1985. "The Common Structure of Tests for Selectivity Bias, Serial Correlation, Heteroscedaticity, and Non-normality in the Tobit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 1-20, February.
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    1. T.R.L. Fry & R.D. Brooks & Br. Comley & J. Zhang, 1993. "Economic Motivations for Limited Dependent and Qualitative Variable Models," The Economic Record, The Economic Society of Australia, vol. 69(2), pages 193-205, June.

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