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Does aid effectiveness depend on the quality of donors?

Author

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  • Minasyan, Anna
  • Nunnenkamp, Peter
  • Richert, Katharina

Abstract

The question of whether aid recipient countries would benefit from stronger income effects if foreign donors provided higher quality aid has received scant attention so far. We make use of the ranking of donors by the Center for Global Development to compare the effects of quality-adjusted aid and unadjusted aid on changes in GDP per capita. Our difference-in-difference-in-differences analysis reveals significant treatment effects for quality-adjusted aid, while we do not find significant treatment effects for unadjusted aid. The quality of aid matters most when accounting for delayed effects. However, our results depend on the sample of recipient countries.

Suggested Citation

  • Minasyan, Anna & Nunnenkamp, Peter & Richert, Katharina, 2016. "Does aid effectiveness depend on the quality of donors?," Kiel Working Papers 2046, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwkwp:2046
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    References listed on IDEAS

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    Cited by:

    1. Emmanuelle Auriol & Josepa Miquel-Florensa, 2019. "Taxing fragmented aid to improve aid efficiency," The Review of International Organizations, Springer, vol. 14(3), pages 453-477, September.
    2. Francesca G. Caselli & Andrea F. Presbitero, 2020. "Aid Effectiveness in Fragile States," Mo.Fi.R. Working Papers 158, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    3. Axel Dreher & Valentin F. Lang & Sebastian Ziaja, 2017. "Foreign Aid in Areas of Limited Statehood," CESifo Working Paper Series 6340, CESifo Group Munich.
    4. Lennart Kaplan & Jana Kuhnt & Katharina Richert & Sebastian Vollmer, "undated". "What Explains the Uptake of Development Interventions?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 261, Courant Research Centre PEG.
    5. Tomi Ovaska & Ryo Takashima, 2020. "Caveat Emptor: Foreign Aid and Entrepreneurship," Economies, MDPI, Open Access Journal, vol. 8(1), pages 1-13, January.

    More about this item

    Keywords

    donor ranking; quality-adjusted aid; income effects; DDD analysis;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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