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Grants to needy countries? A study of aid composition between 1975 and 2005

Author

Listed:
  • Johansson, Pernilla

    (Ministry of Finance)

Abstract

This paper studies whether the poorest and most indebted countries receive aid in the form of grants rather than loans. By studying bilateral aid flows to low- and middle-income countries between 1975 and 2005, the paper provides evidence on the determinants of the grant component of aid flows. While the empirical analysis finds no evidence that more indebted countries receive a higher grant component, it shows that poorer countries receive a significantly higher grant component of aid, although the size of the effect is rather limited.

Suggested Citation

  • Johansson, Pernilla, 2009. "Grants to needy countries? A study of aid composition between 1975 and 2005," Working Papers 2009:19, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2009_019
    as

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    File URL: http://project.nek.lu.se/publications/workpap/Papers/WP09_19.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Aid composition; Aid allocation; Indebtedness; Poverty;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid

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    This paper has been announced in the following NEP Reports:

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