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The Economics of International Aid

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  • Kanbur, Ravi

Abstract

This paper presents an overview of the economics of international aid, highlighting the historical literature and the contemporary debates. It reviews the “trade-theoretic” and the “contract-theoretic” analytical literature, and the empirical and institutional literature. It demonstrates a great degree of continuity in the policy concerns of the aid discourse in the twentieth century, and shows how the theoretical, empirical and institutional literature has evolved to address specific policy concerns of each period.

Suggested Citation

  • Kanbur, Ravi, 2003. "The Economics of International Aid," Working Papers 127784, Cornell University, Department of Applied Economics and Management.
  • Handle: RePEc:ags:cudawp:127784
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    File URL: http://purl.umn.edu/127784
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    References listed on IDEAS

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    1. Paul Mosley & John Hudson & Sara Horrell, 1992. "Aid, the public sector and the market in less developed countries: A return to the scene of the crime," Journal of International Development, John Wiley & Sons, Ltd., vol. 4(2), pages 139-150, March.
    2. Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398, April.
    3. Bhagwati, Jagdish N & Brecher, Richard A & Hatta, Tatsuo, 1983. "The Generalized Theory of Transfers and Welfare: Bilateral Transfers in a Multilateral World," American Economic Review, American Economic Association, vol. 73(4), pages 606-618, September.
    4. Tarp, Finn, 2006. "Aid and Development," MPRA Paper 13171, University Library of Munich, Germany.
    5. Kanbur, Ravi & Sandler, Todd & Morrison, Kevin, 1999. "The Future of Development Assistance: Common Pools and International Public Goods," Staff General Research Papers Archive 1629, Iowa State University, Department of Economics.
    6. Kunibert Raffer & H. W. Singer, 1996. "The Foreign Aid Business," Books, Edward Elgar Publishing, number 1011.
    7. Svensson, Jakob, 2003. "Why conditional aid does not work and what can be done about it?," Journal of Development Economics, Elsevier, vol. 70(2), pages 381-402, April.
    8. Marco Ferroni & Ashoka Mody, 2002. "International Public Goods : Incentives, Measurement, and Financing," World Bank Publications, The World Bank, number 15238.
    9. Svensson, Jakob, 2000. "When is foreign aid policy credible? Aid dependence and conditionality," Journal of Development Economics, Elsevier, vol. 61(1), pages 61-84, February.
    10. Christopher D. Gerrard & Marco Ferroni & Ashoka Mody, 2001. "Global Public Policies and Programs : Implications for Financing and Evaluation," World Bank Publications, The World Bank, number 13956.
    11. Howard White & Oliver Morrissey, 1997. "Conditionality When Donor And Recipient Preferences Vary," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 497-505.
    12. Younger, Stephen D., 1992. "Aid and the Dutch disease: Macroeconomic management when everybody loves you," World Development, Elsevier, vol. 20(11), pages 1587-1597, November.
    13. Fishlow, Albert, 1972. "Brazilian Size Distribution of Income," American Economic Review, American Economic Association, vol. 62(2), pages 391-402, May.
    14. Brecher, Richard A. & Bhagwati, Jagdish N., 1982. "Immiserizing transfers from abroad," Journal of International Economics, Elsevier, vol. 13(3-4), pages 353-364, November.
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    Cited by:

    1. Bigsten, Arne & Tengstam, Sven, 2015. "International Coordination and the Effectiveness of Aid," World Development, Elsevier, vol. 69(C), pages 75-85.
    2. Finn Tarp, 2006. "Aid and Development," Discussion Papers 06-12, University of Copenhagen. Department of Economics.
    3. Labbate, Gabriel, 2008. "The incremental cost principle and the conservation of globally important habitats: A critical examination," Ecological Economics, Elsevier, vol. 65(2), pages 216-224, April.
    4. Brück, Tilman & Xu, Guo, 2012. "Who gives aid to whom and when? Aid accelerations, shocks and policies," European Journal of Political Economy, Elsevier, vol. 28(4), pages 593-606.
    5. Channing Arndt & Sam Jones & Finn Tarp, 2009. "Aid and Growth: Have We Come Full Circle?," WIDER Working Paper Series WIDER Discussion Paper 20, World Institute for Development Economic Research (UNU-WIDER).
    6. Axel Dreher, 2009. "IMF conditionality: theory and evidence," Public Choice, Springer, vol. 141(1), pages 233-267, October.
    7. Dimitris K Christopoulos & Gregorios Siourounis & Irene Vlachaki, 2016. "Democratic Reforms, Foreign Aid and Production Inefficiency," Manchester School, University of Manchester, vol. 84(3), pages 363-389, June.
    8. repec:eee:wdevel:v:99:y:2017:i:c:p:320-334 is not listed on IDEAS
    9. Dreher, Axel & Minasyan, Anna & Nunnenkamp, Peter, 2015. "Government ideology in donor and recipient countries: Does ideological proximity matter for the effectiveness of aid?," European Economic Review, Elsevier, vol. 79(C), pages 80-92.
    10. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, Elsevier.
    11. Julien Daubanes & Ruxanda Berlinschi, 2009. "Prendre d'une main et donner de l'autre : taxation des produits pétroliers et aide internationale," Economie & Prévision, La Documentation Française, vol. 0(4), pages 21-37.
    12. Amegashie, J. Atsu & Ouattara, Bazoumanna & Strobl, Eric, 2007. "Moral Hazard and the Composition of Transfers: Theory with an Application to Foreign Aid," MPRA Paper 3158, University Library of Munich, Germany, revised 06 May 2007.
    13. Sanjay Jain, 2007. "Project Assistance versus Budget Support: An Incentive-Theoretic Analysis of Aid Conditionality," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(4), pages 694-719, December.
    14. Mavrotas, George & Villanger, Espen, 2006. "Multilateral Aid Agencies and Strategic Donor Behaviour," WIDER Working Paper Series DP2006/02, World Institute for Development Economic Research (UNU-WIDER).
    15. Bigsten, Arne, 2006. "Aid and Economic Development in Africa," Working Papers in Economics 237, University of Gothenburg, Department of Economics.
    16. BERLINSCHI Ruxanda & DAUBANES Julien, 2007. "Aid to Poor Resource Exporting Countries : Which Role Should be Played by Resource Taxation?," LERNA Working Papers 07.23.244, LERNA, University of Toulouse.
    17. Hodler, Roland & Dreher, Axel, 2013. "Development (paradigm) failures," Journal of Development Economics, Elsevier, vol. 101(C), pages 63-74.
    18. Abegaz, Berhanu, 2005. "Multilateral development aid for Africa," Economic Systems, Elsevier, vol. 29(4), pages 433-454, December.
    19. Bigsten, Arne, 2006. "Donor coordination and the uses of aid," Working Papers in Economics 196, University of Gothenburg, Department of Economics.

    More about this item

    Keywords

    International Development;

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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