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Modelling inter-temporal aid allocation: a new application with an emphasis on Papua New Guinea

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  • Simon Feeny
  • Mark Mcgillivray

Abstract

This paper models the inter-temporal allocation of foreign development aid to Papua New Guinea (PNG). A formal theoretical model of aid allocation is developed, in which aid to any one country is determined jointly with aid to all other recipient countries. This is recognized in the econometric application of this model, which involves simultaneously modelling aid to a number of countries in addition to PNG. Results based on data for the period 1969-99 indicate that both recipient need and donor interest variables determine the amount of foreign aid to PNG and most other countries under consideration.

Suggested Citation

  • Simon Feeny & Mark Mcgillivray, 2004. "Modelling inter-temporal aid allocation: a new application with an emphasis on Papua New Guinea," Oxford Development Studies, Taylor & Francis Journals, vol. 32(1), pages 101-118.
  • Handle: RePEc:taf:oxdevs:v:32:y:2004:i:1:p:101-118 DOI: 10.1080/1360081042000184147
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    Cited by:

    1. Pincin, Jared, 2013. "Political power and aid tying practices in the development assistance committee countries," MPRA Paper 49806, University Library of Munich, Germany.
    2. Arvin, B. Mak & Kayani, Zafar, 2009. "Donor Motivation of Inter-Temporal Foreign Assistance to Nepal," Review of Applied Economics, Review of Applied Economics, vol. 5(1-2).
    3. Mark McGillivray, 2005. "What determines African bilateral aid receipts?," Journal of International Development, John Wiley & Sons, Ltd., pages 1003-1018.
    4. McGillivray, Mark, 2006. "Aid Allocation and Fragile States," WIDER Working Paper Series DP2006/01, World Institute for Development Economic Research (UNU-WIDER).

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