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A meta-analysis of development aid allocation: The effects of income level and population size

Author

Listed:
  • Hristos Doucouliagos
  • Martin Paldam

    () (School of Economics and Management, University of Aarhus, Denmark)

Abstract

The effect on aid allocation of the income level and population size in the recipient country is analyzed. The data show that both variables have a significant and robust negative effect, but they explain only a small part of the variation. The main thrust of the paper is a meta-analysis of the large aid allocation literature, where the impact of the two variables is analyzed, controlled for a wide range of factors. By the standard meta-tests, the results converge to much the same as found in our own analysis of the data. The poverty effect is in accordance with stated policies of all donors, while the population effect appears contrary to the stated policy of all donors. The main multilateral donors do not influence this pattern. Indeed, the evidence suggests that the poverty effect is smaller for the multilateral donors. Six main hypotheses are presented to explain the population effect.

Suggested Citation

  • Hristos Doucouliagos & Martin Paldam, 2007. "A meta-analysis of development aid allocation: The effects of income level and population size," Economics Working Papers 2007-15, Department of Economics and Business Economics, Aarhus University.
  • Handle: RePEc:aah:aarhec:2007-15
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    Cited by:

    1. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008. "Does US aid buy UN general assembly votes? A disaggregated analysis," Public Choice, Springer, vol. 136(1), pages 139-164, July.
    2. Axel Dreher & Florian Mölders & Peter Nunnenkamp, 2010. "Aid Delivery through Non-governmental Organisations: Does the Aid Channel Matter for the Targeting of Swedish Aid?," The World Economy, Wiley Blackwell, vol. 33(2), pages 147-176, February.
    3. Nunnenkamp, Peter & Weingarth, Janina & Weisser, Johannes, 2009. "Is NGO aid not so different after all? Comparing the allocation of Swiss aid by private and official donors," European Journal of Political Economy, Elsevier, vol. 25(4), pages 422-438, December.
    4. Ojeaga, Paul, 2012. "Does Foreign Aid Promote Trade? Evidence from Some Selected African Countries," MPRA Paper 55580, University Library of Munich, Germany.
    5. Metzger, Laura & Nunnenkamp, Peter & Mahmoud, Toman Omar, 2010. "Is Corporate Aid Targeted to Poor and Deserving Countries? A Case Study of Nestlé's Aid Allocation," World Development, Elsevier, vol. 38(3), pages 228-243, March.
    6. Ojeaga, Paul, 2012. "Foreign Aid and African Exporters: Help or Harm?," MPRA Paper 55564, University Library of Munich, Germany.
    7. Metzger, Laura & Nunnenkamp, Peter & Omar Mahmoud, Toman, 2008. "Does corporate aid really help fighting worldwide poverty? A case study of Nestlé's aid allocation," Kiel Working Papers 1414, Kiel Institute for the World Economy (IfW).

    More about this item

    Keywords

    Aid allocation; poverty effect; population effect; meta-analysis;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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