IDEAS home Printed from
   My bibliography  Save this article

The impact of multilateral and tied bilateral aid on the UK economy


  • Oliver Morrissey


In line with their commitment to reduce public spending, the Conservative government under Thatcher cut the aid budget by some six per cent in real terms in their first five years in power, with the brunt of the cuts falling on bilateral aid. Business groups deplored this trend and argued that it be reversed because tied bilateral aid generated greater commercial benefits for the economy than multilateral aid, an argument which government ministers appeared to accept. We estimate and compare the impact of multilateral and tied bilateral aid on the UK economy in 1980 and 1985 using Input-Output impact analysis. The results suggest, quite strongly, that multilateral aid generates greater benefits both in volume terms and per equivalent amount of aid expenditure. We conclude that the case for the increased use of tied bilateral aid is weaker than commonly supposed.

Suggested Citation

  • Oliver Morrissey, 1990. "The impact of multilateral and tied bilateral aid on the UK economy," Journal of International Development, John Wiley & Sons, Ltd., vol. 2(1), pages 60-76, January.
  • Handle: RePEc:wly:jintdv:v:2:y:1990:i:1:p:60-76

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Ruerd Ruben, 2012. "Dimensionner l'aide au développement : ce que nous enseigne l'évaluation. Dimensioning Development Aid: Some Lessons from Evaluation," Revue d’économie du développement, De Boeck Université, vol. 20(4), pages 95-123.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:2:y:1990:i:1:p:60-76. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.