Aid fragmentation and donor transaction costs

Edward Anderson ()

Economics Letters, 2012, vol. 117, issue 3, 799-802

Abstract: This paper shows that the fragmentation of bilateral donors’ aid across recipient countries tends to raise their transaction costs. It is estimated that bilateral donors could reduce their transaction costs by US$2.5 billion per year through greater recipient country specialisation.

Keywords: Foreign aid; Transaction costs; Aid fragmentation (search for similar items in EconPapers)
JEL-codes: F35 O19 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:117:y:2012:i:3:p:799-802

DOI: 10.1016/j.econlet.2012.08.034

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