IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Aid Effectiveness: Revisiting the Trade-off Between Needs and Governance

Listed author(s):
  • Bourguignon, François
  • Platteau, Jean-Philippe
Registered author(s):

    This paper aims at elucidating the issue of inter-country aid allocation by a single donor when the latter is sensitive to both needs and governance considerations and is moreover able to influence local governance through his own disciplining effort. In a one-donor-two-recipient framework and in conformity with observations from the real world, the poorer recipient country is assumed to be less well governed than the richer one. Many rich insights are gained from the analysis. In particular, the poorer and less well governed country is more likely to receive a higher share of aid if governance is endogenized through external disciplining by the donor. And the share of a country will always increase if it has succeeded in improving its internal governance, or discipline, thanks to its own effort. This is true even in the case where this effort leads to a fall of aggregate governance as a result of an overcompensating reaction of the donor when setting the level of external discipline . Finally, a decrease in the cost of external discipline will favor the poorer and less well governed country but only provided that the inter-country governance gap is large enough.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=12277
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 12277.

    as
    in new window

    Length:
    Date of creation: Sep 2017
    Handle: RePEc:cpr:ceprdp:12277
    Contact details of provider: Postal:
    Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.

    Phone: 44 - 20 - 7183 8801
    Fax: 44 - 20 - 7183 8820

    Order Information: Email:


    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:12277. 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: ()

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.