Aid Effort and Its Determinants: A Comparison of the Italian Performance with other OECD Donors

Simone Bertoli, Giovanni Cornia and Francesco Manaresi ()

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: this paper aims at contributing to a better understanding of the determinants of aid effort by donor countries, a topic that has been rather under researched in the vast economic literature on development aid. We conduct an econometric analysis on panel data that refer to the 22 member countries of the OECD Development Assistance Committee over the 1970 2004 period; the estimates are then used as a benchmark against which we assess to what extent the poor Italian aid performance can be traced back to its specific macroeconomic, structural and institutional characteristics. The analysis suggests that these factors – that are found to significantly influence aid effort – fall short of explaining the limited amount of fiscal resources that Italy devotes to international aid. Even when its specific characteristics are accounted for, Italy is found to be lagging behind the OECD norm, so that the analysis challenges the claims that the limited Italian aid effort is due to binding fiscal constraints.

Keywords: foreign aid; fiscal expenditures; economic development (search for similar items in EconPapers)
JEL-codes: F35 H59 H87 O1 (search for similar items in EconPapers)
Pages: 43 pag
Date: 2008
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 (34)

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Related works:
Journal Article: Aid performance and its determinants. A comparison of Italy with the OECD norm (2007)
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