A DELICATE BALANCING ACT FOR AID EFFECTIVENESS IN SMALL ISLAND DEVELOPING STATES: PERFORMANCE-BASED SELECTIVITY OR VULNERABILITY-BASED ALLOCATION? COUNTRIES

Fabrice Nguegang ()
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Fabrice Nguegang: University of Bamenda (Cameroon)

Asia-Pacific Sustainable Development Journal, 2024, vol. 31, issue 1, 143-170

Abstract: This paper examines the effectiveness of aid allocation by considering (a) policy and institutions as the traditional criteria for aid allocation and (b) the level of vulnerability as a new paradigm, focusing on 35 selected small island developing States over the period 2002−2020. Using the generalized method of moments, the findings show that vulnerability-based allocation is the most relevant criterion for aid allocation. They indicate that regional cooperation can be a path to “raise the voice” of Pacific small island developing States to rethink the aid allocation mechanism in favour of a vulnerability-based allocation.

Keywords: aid allocation; vulnerability; policy and institutions; economic growth; small island developing States; Pacific small island developing States (search for similar items in EconPapers)
JEL-codes: C21 C23 F15 F35 O11 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:unt:japsdj:v:31:y:2024:i:1:p:143-170

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