Modelling of aid motivation using time series data: The case of Papua New Guinea

Rukmani Gounder

Oxford Development Studies, 1999, vol. 27, issue 2, 233-250

Abstract: In 1984 the Jackson Report on Australia's overseas aid programme, in part, focused attention on objectives and priorities in the aid programme. There is a unique aid relationship between Australia and Papua New Guinea. This paper analyses what motivates Australia's provision of aid. The aid motivation literature addresses this issue by employing cross-section data to all recipient countries, thus imposing uniformity on them. It is argued in this study that time series analysis is required to answer the question of aid motivation. The econometric results obtained by testing the recipient need and donor interest models provide support for both. Applications of non-nested tests indicate acceptance of the recipient need model and rejection of the donor interest model.

Date: 1999
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DOI: 10.1080/13600819908424175

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