Aid Allocation and Aid Effectiveness: An Empirical Analysis

Alessia Isopi () and George Mavrotas

No RP2006-07, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The paper performs aid allocation analysis using OECD-DAC data covering 20 aid donors and 176 recipients over the period 1980-2003. We improve upon earlier work in this area by employing inter alia the variable 'past outcome' measuring aid effectiveness in order to link together aid allocation and aid effectiveness. In line with previous work, we also account for both altruistic and selfish donor motives in the empirical analysis. As expected, empirical results based on Tobit estimates of aid allocation for individual donors vary quite significantly among donors.

Keywords: Cost effectiveness; Economic assistance and foreign aid; Economic development (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:rp2006-07

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