Aid Effort and its Determinants

Jeffery I. Round and Matthew Odedokun

No DP2003-03, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The paper empirically explores the factors that could have accounted for the generally declining aid effort (defined as the generosity ratio, or the share of GDP given as aid) of bilateral donors over the last three decades. Annual panel data over 1970-2000 period for the 22 DAC members are used in a series of regressions. The findings suggest the existence of progressivity of aid in relation to donor income. There is also evidence of the economies of scale, in the sense that the share of aid in income decreases with growth in the size of donor country population.

Keywords: Economic assistance and foreign aid; Economies of scale; Panel analysis; Poverty (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (14)

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