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Donor coordination and specialization: did the Paris Declaration make a difference?

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  • Peter Nunnenkamp
  • Hannes Öhler
  • Rainer Thiele

Abstract

We assess whether bilateral and multilateral donors of foreign aid specialized and coordinated their activities with other donors as agreed in the Paris Declaration of 2005. We account for donor heterogeneity, varying aid priorities and recipient characteristics in order to isolate changes in donor behaviour over time. Recent shifts in aid priorities, such as the rising importance of general budget support, have reduced the fragmentation of aid. Nevertheless, our results reveal that aid fragmentation persisted after the Paris Declaration and coordination among donors has even weakened. Copyright Kiel Institute 2013

Suggested Citation

  • 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.
    • Handle: RePEc:spr:weltar:v:149:y:2013:i:3:p:537-563
    DOI: 10.1007/s10290-013-0157-2
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    References listed on IDEAS

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    2. Peter Nunnenkamp & Rainer Thiele, 2013. "Financing for Development: The Gap between Words and Deeds since Monterrey," Development Policy Review, Overseas Development Institute, vol. 31(1), pages 75-98, January.
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    More about this item

    Keywords

    Aid allocation; Fragmentation; Theil index; Donor coordination; Overlaps; Paris Declaration; F35;
    All these keywords.

    JEL classification:

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

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