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Modeling Efficiency of Foreign Aid Allocation in Malawi

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  • Philip A. White
  • Candace Berrett
  • E. Shannon Neeley-Tass
  • Michael G. Findley

Abstract

The Open Aid Malawi initiative has collected an unprecedented database that identifies as much location-specific information as possible for each of over 2500 individual foreign aid donations to Malawi since 2003. The efficient use and distribution of such aid is important to donors and to Malawi citizens. However, because of individual donor goals and difficulty in tracking donor coordination it is difficult to determine whether aid allocation is efficient. We compare several Bayesian spatial generalized linear mixed models to relate aid allocation to various economic indicators within seven donation sectors. We find that the spatial gamma regression model best predicts current aid allocation. While we are cautious about making strong claims based on this exploratory study, we provide a methodology by which one could (i) evaluate the efficiency of aid allocation via a study of the locations of current aid allocation as compared to the need at those locations and (ii) come up with a strategy for efficient allocation of resources in conditions where there exists an ideal relationship between aid allocation and economic sectors.

Suggested Citation

  • Philip A. White & Candace Berrett & E. Shannon Neeley-Tass & Michael G. Findley, 2019. "Modeling Efficiency of Foreign Aid Allocation in Malawi," The American Statistician, Taylor & Francis Journals, vol. 73(4), pages 385-399, October.
    • Handle: RePEc:taf:amstat:v:73:y:2019:i:4:p:385-399
    DOI: 10.1080/00031305.2018.1470032
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    Cited by:

    1. Hangala Siachiwena, 2023. "International donors, domestic politics, and the expansion of social cash transfers in Malawi," Development Policy Review, Overseas Development Institute, vol. 41(1), January.

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