EconPapers    
Economics at your fingertips  
 

Does Aid Effectiveness Depend on the Quality of Donors?

Anna Minasyan, Peter Nunnenkamp and Katharina Richert

World Development, 2017, vol. 100, issue C, 16-30

Abstract: It has been intensively and controversially discussed whether “good” economic policies and governance in the recipient countries render foreign aid more effective in alleviating poverty and stimulating economic growth. By contrast, the question of whether aid recipient countries would benefit from stronger income effects if foreign donors provided higher quality aid has received scant attention so far. We make use of the index of donor performance from the Center for Global Development to compare the effects of quality-adjusted aid and unadjusted aid on changes in GDP per capita. Our difference-in-differences analysis reveals significant and quantitatively important treatment effects for quality-adjusted aid after the introduction of the Paris Declaration on Aid Effectiveness in 2005, while we do not find significant treatment effects for unadjusted aid. This implies that only recipient countries with increased aid inflows of high quality benefit in terms of increasing GDP per capita. The quality of aid matters most when accounting for delayed effects. However, our results depend on the sample of recipient countries.

Keywords: donor ranking; quality-adjusted aid; income effects; aid effectiveness; Paris declaration; DD analysis (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X17302516
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Does aid effectiveness depend on the quality of donors? (2016) Downloads
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:eee:wdevel:v:100:y:2017:i:c:p:16-30

DOI: 10.1016/j.worlddev.2017.07.023

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2023-01-28
Handle: RePEc:eee:wdevel:v:100:y:2017:i:c:p:16-30