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Aid Effort and Its Determinants: A Comparison of the Italian Performance with other OECD Donors

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Abstract

this paper aims at contributing to a better understanding of the determinants of aid effort by donor countries, a topic that has been rather under researched in the vast economic literature on development aid. We conduct an econometric analysis on panel data that refer to the 22 member countries of the OECD Development Assistance Committee over the 1970 2004 period; the estimates are then used as a benchmark against which we assess to what extent the poor Italian aid performance can be traced back to its specific macroeconomic, structural and institutional characteristics. The analysis suggests that these factors – that are found to significantly influence aid effort – fall short of explaining the limited amount of fiscal resources that Italy devotes to international aid. Even when its specific characteristics are accounted for, Italy is found to be lagging behind the OECD norm, so that the analysis challenges the claims that the limited Italian aid effort is due to binding fiscal constraints.

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  • Simone Bertoli & Giovanni Andrea Cornia & Francesco Manaresi, 2008. "Aid Effort and Its Determinants: A Comparison of the Italian Performance with other OECD Donors," Working Papers - Economics wp2008_11.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  • Handle: RePEc:frz:wpaper:wp2008_11.rdf
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    Cited by:

    1. Sèna Kimm Gnangnon, 2016. "Market Access of OECD Donor Countries and Their Supply of Aid for Trade," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 1-38, February.
    2. Gnangnon, Sèna Kimm, 2017. "Structural economic vulnerability, openness and bilateral development aid flows," Economic Analysis and Policy, Elsevier, vol. 53(C), pages 77-95.
    3. Sèna Kimm Gnangnon, 2013. "How do OECD donor countries distribute foreign aid among developing countries during their fiscal episodes?," Working Papers halshs-00786009, HAL.
    4. Jean-Louis Combes & Rasmané Ouedraogo, 2014. "Does Pro-cyclical Aid Lead to Pro-cyclical Fiscal Policy? An Empirical Analysis for Sub-Saharan Africa," Working Papers halshs-01084600, HAL.
    5. Fuchs, Andreas & Dreher, Axel & Nunnenkamp, Peter, 2014. "Determinants of Donor Generosity: A Survey of the Aid Budget Literature," World Development, Elsevier, vol. 56(C), pages 172-199.
    6. repec:eee:eecrev:v:112:y:2019:i:c:p:127-147 is not listed on IDEAS
    7. Jared A. Pincin, 2013. "Political Power and Aid-Tying Practices in the Development Assistance Committee Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 41(3), pages 372-390, September.
    8. Pincin, Jared, 2012. "Political power and aid tying practices in the development assistance committee countries," MPRA Paper 39463, University Library of Munich, Germany.
    9. Sam Jones, 2011. "Aid Supplies Over Time Accounting for Heterogeneity, Trends, and Dynamics," WIDER Working Paper Series 004, World Institute for Development Economic Research (UNU-WIDER).
    10. repec:bla:devpol:v:36:y:2018:i:6:p:631-648 is not listed on IDEAS
    11. Dreher, Axel & Fuchs, Andreas & Langlotz, Sarah, 2019. "The effects of foreign aid on refugee flows," European Economic Review, Elsevier, vol. 112(C), pages 127-147.
    12. Jones, Sam, 2015. "Aid Supplies Over Time: Addressing Heterogeneity, Trends, and Dynamics," World Development, Elsevier, vol. 69(C), pages 31-43.
    13. repec:eee:wdevel:v:106:y:2018:i:c:p:136-148 is not listed on IDEAS
    14. Axel Dreher & Andreas Fuchs, 2011. "Does terror increase aid?," Public Choice, Springer, vol. 149(3), pages 337-363, December.
    15. Sena Kimm GNANGNON, 2011. "The consequences of Fiscal Episodes in OECD Countries for Aid Supply," Working Papers 201122, CERDI.
    16. Travis Wiseman & Andrew Young, 2015. "Is foreign aid a pure public good for donor country citizens?," Constitutional Political Economy, Springer, vol. 26(4), pages 421-433, December.
    17. Sena Kimm GNANGNON, 2013. "How do OECD donor countries distribute foreign aid among developing countries during their fiscal episodes?," Working Papers 201301, CERDI.
    18. Alessandro De Matteis, 2016. "Whose poverty really matters when deciding aid volumes?," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 12(1/2), pages 28-53.
    19. Fuchs, Andreas & Müller, Angelika, 2018. "Democracy and aid donorship," Kiel Working Papers 2113, Kiel Institute for the World Economy (IfW).
    20. Pincin, Jared, 2013. "Political power and aid tying practices in the development assistance committee countries," MPRA Paper 49806, University Library of Munich, Germany.
    21. Andrew Mold & Sebastian Paulo & Annalisa Prizon, 2009. "Taking Stock of the Credit Crunch: Implications for Development Finance and Global Governance," OECD Development Centre Working Papers 277, OECD Publishing.
    22. Fuchs, Andreas & Richert, Katharina, 2015. "Do Development Minister Characteristics Affect Aid Giving?," Working Papers 0604, University of Heidelberg, Department of Economics.
    23. Gnangnon, Sena Kimm, 2013. "The consequences of fiscal episodes in OECD DAC countries for aid supply," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(3), pages 302-313.
    24. repec:ces:ifodic:v:15:y:2018:i:4:p:50000000000862 is not listed on IDEAS

    More about this item

    Keywords

    foreign aid; fiscal expenditures; economic development;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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