What Determines the Size of Aid Projects?
Over the last few years, considerable attention has focused on aid fragmentation, the proliferation of donors and projects in developing countries. Aid fragmentation has continued to increase despite international efforts to foster donor coordination. One possible implication of fragmentation is smaller aid projects, potentially with the result of more administrative work for overtaxed recipient governments per dollar of aid received. In principle, project size can be a function of donor characteristics, recipient characteristics, donor-recipient relations, and the type of projects funded. This paper makes use of PLAID data on bilateral aid commitments, sector, and funding agency to explore the determinants of project size and to better understand the forces driving aid fragmentation. To the extent that project size is driven by the sectoral composition or purpose of aid, the associated administrative costs may be justified. Variations due to other factors, e.g., a donor's administrative structure or bureaucratic interests, provide a stronger case for reforms.
|Date of creation:||Mar 2010|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.villanova.edu/business/facultyareas/economics/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kunibert Raffer, 1998. "‘Looking a Gift Horse in the Mouth’: Analysing Donors’ Aid Statistics," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 1(2), pages 1-20, November.
- Halonen-Akatwijuka Maija, 2007.
"Coordination Failure in Foreign Aid,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 7(1), pages 1-40, August.
- Roodman, David, 2006.
"Aid Project Proliferation and Absorptive Capacity,"
Working Paper Series
RP2006/04, World Institute for Development Economic Research (UNU-WIDER).
- KIMURA Hidemi & SAWADA Yasuyuki & MORI Yuko, 2007.
"Aid Proliferation and Economic Growth: A Cross-Country Analysis,"
07044, Research Institute of Economy, Trade and Industry (RIETI).
- Kimura, Hidemi & Mori, Yuko & Sawada, Yasuyuki, 2012. "Aid Proliferation and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 40(1), pages 1-10.
- Frot, Emmanuel, 2009. "Early vs. Late in Aid Partnerships and Implications for Tackling Aid Fragmentation," SITE Working Paper Series 1, Stockholm Institute of Transition Economics, Stockholm School of Economics.
- Djankov, Simeon & Montalvo, Jose G. & Reynal-Querol, Marta, 2009. "Aid with multiple personalities," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 217-229, June.
- Yutaka Arimoto & Hisaki Kono, 2009.
"Foreign Aid and Recurrent Cost: Donor Competition, Aid Proliferation, and Budget Support,"
Review of Development Economics,
Wiley Blackwell, vol. 13(2), pages 276-287, 05.
- ARIMOTO Yutaka & KONO Hisaki, 2007. "Foreign Aid and Recurrent Cost: Donor Competition, Aid Proliferation and Budget Support," Discussion papers 07051, Research Institute of Economy, Trade and Industry (RIETI).
- Torsvik, Gaute, 2005. "Foreign economic aid; should donors cooperate?," Journal of Development Economics, Elsevier, vol. 77(2), pages 503-515, August.
- Emmanuel Frot & Javier Santiso, 2009.
"Herding in Aid Allocation,"
OECD Development Centre Working Papers
279, OECD Publishing.
- Arnab Acharya & Ana Teresa Fuzzo de Lima & Mick Moore, 2006. "Proliferation and fragmentation: Transactions costs and the value of aid," Journal of Development Studies, Taylor & Francis Journals, vol. 42(1), pages 1-21.
- Morss, Elliott R., 1984. "Institutional destruction resulting from donor and project proliferation in Sub-Saharan African countries," World Development, Elsevier, vol. 12(4), pages 465-470, April.
- David Roodman, 2006. "Competitive Proliferation of Aid Projects: A Model," Working Papers 89, Center for Global Development.
- Knack, Stephen & Rahman, Aminur, 2007.
"Donor fragmentation and bureaucratic quality in aid recipients,"
Journal of Development Economics,
Elsevier, vol. 83(1), pages 176-197, May.
- Knack, Stephen & Rahman, Aminur, 2004. "Donor fragmentation and bureaucratic quality in aid recipients," Policy Research Working Paper Series 3186, The World Bank.
- Frot, Emmanuel & Santiso, Javier, 2009.
"Crushed Aid: Fragmentation in Sectoral Aid,"
SITE Working Paper Series
6, Stockholm Institute of Transition Economics, Stockholm School of Economics.
- Emmanuel Frot & Javier Santiso, 2008. "Development Aid and Portfolio Funds: Trends, Volatility and Fragmentation," OECD Development Centre Working Papers 275, OECD Publishing.
- William Easterly & Tobias Pfutze, 2008. "Where Does the Money Go? Best and Worst Practices in Foreign Aid," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 29-52, Spring.
When requesting a correction, please mention this item's handle: RePEc:vil:papers:10. 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: (Christopher Kilby)
If references are entirely missing, you can add them using this form.