Aid fragmentation and donor transaction costs
This paper shows that the fragmentation of bilateral donors’ aid across recipient countries tends to raise their transaction costs. It is estimated that bilateral donors could reduce their transaction costs by US$2.5 billion per year through greater recipient country specialisation.
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- Djankov, Simeon & Montalvo, Jose G. & Reynal-Querol, Marta, 2009. "Aid with multiple personalities," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 217-229, June.
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- 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.
- World Bank, 2011. "World Development Indicators 2011," World Bank Publications, The World Bank, number 2315, March.
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