THE IMPACTS OF BIASED RESOURCE ALLOCATION ON THE EFFECTIVENESS OF OFFICIAL DEVELOPMENT ASSISTANCE

Sung-Ko Li and Chun-Kei Tsang
Additional contact information
Sung-Ko Li: Department of Economics, Hong Kong Baptist University, The Wing Lung Bank Building for Business Studies, 34 Renfrew Road, Kowloon Tong, Kowloon, Hong Kong, P. R. China
Chun-Kei Tsang: Department of Economics, Hong Kong Baptist University, Hong Kong, P. R. China3Business, Economic and Public Policy Research Centre, Hong Kong Shue Yan University, Hong Kong, P. R. China

The Singapore Economic Review (SER), 2020, vol. 65, issue 01, 239-256

Abstract: Many developing countries are receiving official development assistance (ODA). Whether ODA is beneficial or harmful to the receiving country is controversial in the literature. This paper analyzes this issue from a new angle by adopting the framework of competitiveness which allows us to link resource allocation with economic growth. Under this framework, we point out that the mechanism of resource allocation influences the effectiveness of ODA on economic growth. By applying data envelopment analysis (DEA) to competitiveness, we capture the effects of inefficient and biased allocation of resources on ODA. The data confirm the co-existence of positive and negative impacts of ODA. Finally, we conclude that current ODA is not efficient in helping most of the receiving countries.

Keywords: Official development assistance; data envelopment analysis; endowment effect; misallocation effect; biased effect (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590818500285
Access to full text is restricted to subscribers

Related works:
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:wsi:serxxx:v:65:y:2020:i:01:n:s0217590818500285

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590818500285

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().