Types of Foreign Aid

Christian Bjørnskov

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: Foreign aid is given for many purposes and different intentions, yet most studies treat aid flows as a unitary concept. This paper uses factor analysis to separate aid flows into different types. The main types can be interpreted as aid for economic purposes, social purposes, and reconstruction; a residual category captures remaining purposes. Estimating the growth effects of separable types of aid suggests that most aid has no effects while reconstruction aid has direct positive effects. Although this type only applies in special circumstances, it has become more prevalent in more recent years.

Keywords: Foreign aid; dimensionality; development; economic growth (search for similar items in EconPapers)
JEL-codes: F35 O11 (search for similar items in EconPapers)
Pages: 41
Date: 2013-04-09
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Chapter: Types of Foreign Aid (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2013-08

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