Aid Effectiveness Revisited: Comparative Studies of Modalities of Aid to Asia and Africa

Hino Hiroyuki and Atsushi Iimi

No 218, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This paper provides a variety of evidence that shows that in Asia, aid leveraged private investment in the long run, while in Africa the correlation between aid and domestic investment was at best ambiguous. Aid in Africa was diametrically opposite to that of Asia in terms of the amounts the countries received, the sector compositions, the size of individual projects, and the intensity of donor involvement. The sharp contrast in aid effectiveness between Asia and Africa could be attributed at least in part to those differences in the modality of aid delivery. Based on the above analysis, the paper concludes with a few suggestions that could link aid more closely to private investment, and avoid pitfalls that Africa experienced.

Keywords: Official development assistance; Aid effectiveness; Foreign direct investment; East Asia; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: O19 O20 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2008-03
New Economics Papers: this item is included in nep-afr, nep-dev, nep-ppm and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:218

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