Coordination Failure in Foreign Aid

Maija Halonen-Akatwijuka

The B.E. Journal of Economic Analysis & Policy, 2007, vol. 7, issue 1, 40

Abstract: We analyze allocation of foreign aid to different sectors in a recipient developing country. Donors tend to favor social sectors over other public expenditure programs. Due to incomplete information coordination failure occurs. The donors may concentrate too much on the priority sectors leaving the lower priority, yet important, sectors lacking of funds. Alternatively there may be gaps in services in the priority areas because of the information problem. We find that the more similar preferences the donors have, the more scope there is for coordination failure.

Keywords: foreign aid; public goods; coordination failure (search for similar items in EconPapers)
Date: 2007
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://doi.org/10.2202/1935-1682.1616 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: Coordination failure in foreign aid (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejeap:v:7:y:2007:i:1:n:43

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejeap/html

DOI: 10.2202/1935-1682.1616

Access Statistics for this article

The B.E. Journal of Economic Analysis & Policy is currently edited by Hendrik Jürges and Sandra Ludwig

More articles in The B.E. Journal of Economic Analysis & Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().