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Allocation and Effectiveness of Foreign Aid: An Overview

Author

Listed:
  • Ngoc-Sang Pham

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

  • Thi Kim Cuong Pham

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

This study investigates the nexus between foreign aid and economic outcomes in recipient countries and examines the aid rules to promote its effectiveness. Analyses aim to provide an overview of the two important points in aid literature: aid effectiveness and aid allocation. First, we focus on internal and external factors that can explain why foreign aid is effective in some recipient countries but ineffective in others. Both theoretical and empirical analyses are explored. Second, our work discusses the principal elements influencing aid rules often qualified as suboptimal. Finally, we analyze the criteria and conditions for an optimal allocation of aid, taking into account recipient characteristics and donors' preferences.

Suggested Citation

  • Ngoc-Sang Pham & Thi Kim Cuong Pham, 2022. "Allocation and Effectiveness of Foreign Aid: An Overview," Post-Print hal-05180164, HAL.
    • Handle: RePEc:hal:journl:hal-05180164
    DOI: 10.1007/978-981-19-0515-5_8
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