{"title":"Types of Foreign Aid","authors":"C. Bjørnskov","doi":"10.2139/ssrn.2134772","DOIUrl":"https://doi.org/10.2139/ssrn.2134772","url":null,"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.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122570343","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Political Economy of Bilateral Foreign Aid","authors":"E. Werker","doi":"10.2139/ssrn.2141977","DOIUrl":"https://doi.org/10.2139/ssrn.2141977","url":null,"abstract":"Despite its developmental justification, aid is deeply political. This paper examines the political economy of aid allocation first from the perspective of the donor country, and then the political economy of aid receipt and implementation from the perspective of the recipient country. When helpful, it draws from studies of multilateral aid. Following those discussions, the paper explores solutions, employed by the development community, to the distortions brought about by the political economy of bilateral aid-distortions that steer aid away from achieving economic development in the recipient country. As it turns out, none of these solutions can shield foreign aid from the heavy hand of politics. Developing countries heavily influenced by foreign aid end up with a different, and novel, governing apparatus.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"367 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115979178","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Aid and Income Stabilization","authors":"S. G. Jeanneney, S. Tapsoba","doi":"10.1111/j.1467-9361.2012.00657.x","DOIUrl":"https://doi.org/10.1111/j.1467-9361.2012.00657.x","url":null,"abstract":"The potential stabilization of output shocks through official assistance flows is investigated is this paper. It contributes to the current debate on aid instability and argues that official assistance might cope with exogenous output shocks in recipient countries and stabilize resources available for national expenditure, including consumption and investment. High aid dependency and vulnerability to output shocks positively affect the stabilization property of aid. Contrasting with the current literature, the paper documents that aid volatility is not a significant determinant of the stabilizing or destabilizing impact of aid.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128809677","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On the Effect of Foreign Aid on Corruption","authors":"S. Asongu","doi":"10.2139/ssrn.2493289","DOIUrl":"https://doi.org/10.2139/ssrn.2493289","url":null,"abstract":"The Okada & Samreth(2012, EL) finding that aid deters corruption could have an important influence on policy and academic debates. This paper partially negates their criticism of the mainstream approach to the aid-development nexus. Using updated data(1996-2010) from 52 African countries we provide robust evidence of a positive aid-corruption nexus. Development assistance fuels(mitigates) corruption(the control of corruption) in the African continent. As a policy implication, the Okada & Samreth(2012, EL) finding for developing countries may not be relevant for Africa.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-02-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124157937","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effective Development Aid: Selectivity, Proliferation and Fragmentation, and the Growth Impact of Development Assistance","authors":"T. Kihara","doi":"10.2139/ssrn.1997849","DOIUrl":"https://doi.org/10.2139/ssrn.1997849","url":null,"abstract":"This paper examines several indicators of effective development aid, focusing on the contributions of major bilateral donors. The empirical analyses of selectivity for effective aid delivery revealed that, taking a long-term and regional perspective, some major donors including Japan have been as selective in delivering their aid as some countries well-known for their selective aid delivery, such as Denmark. Japan has provided higher aid for the countries with better policy and governance, and higher grant aid for the countries with lower income, particularly in Sub-Saharan Africa.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-02-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114318121","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Results Based Aid: Limitations of New Approaches","authors":"S. Klingebiel","doi":"10.2139/ssrn.2181727","DOIUrl":"https://doi.org/10.2139/ssrn.2181727","url":null,"abstract":"In the current development debate, so called results based approaches play an important part. There are two aspects to this debate: On the one hand, further improving the effectiveness of development cooperation (aid) is important to the specialists, whereas on the other hand many donors (parliaments, the public etc.) continue to call for the justification of aid expenditures. This creates great pressure to give the most concrete evidence for the utility of aid budgets. It is important to distinguish between (i) Results-Based Aid (RBA) and (ii) Results-Based Service Delivery (RBSD). Even if both approaches are based on the same rationale (incentives), they are fundamentally distinct. The current international debate is focused mainly on results based aid.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"25 6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-11-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132805627","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Rogue Aid? The Determinants of China’s Aid Allocation","authors":"A. Dreher, A. Fuchs","doi":"10.2139/ssrn.1926471","DOIUrl":"https://doi.org/10.2139/ssrn.1926471","url":null,"abstract":"Foreign aid from China is often characterized as ‘rogue aid’ that is not guided by recipient need but by China’s national interests alone. However, no econometric study so far confronts this claim with data. We make use of various datasets, covering the 1956-2006 period, to empirically test to which extent political and commercial interests shape China’s aid allocation decisions. We estimate the determinants of China’s allocation of project aid, food aid, medical teams and total aid money to developing countries, comparing its allocation decisions with traditional and other so-called emerging donors. We find that political considerations are an important determinant of China’s allocation of aid. However, in comparison to other donors, China does not pay substantially more attention to politics. In contrast to widespread perceptions, we find no evidence that China’s aid allocation is dominated by natural resource endowments. Moreover, China’s allocation of aid seems to be widely independent of democracy and governance in recipient countries. Overall, denominating aid from China as ‘rogue aid’ seems unjustified.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"89 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127187452","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Aid Fragmentation and Donor Transaction Costs","authors":"E. Anderson","doi":"10.2139/ssrn.1852563","DOIUrl":"https://doi.org/10.2139/ssrn.1852563","url":null,"abstract":"This paper shows that the fragmentation of bilateral donors’ aid across recipient countries tends to raise their transaction costs. It is estimated that bilateral donors could reduce their transaction costs by US$2.5 billion per year through greater recipient country specialisation.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"137 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127440373","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The United States, the World Bank, and the Challenges of International Development in the 1970s","authors":"P. Sharma","doi":"10.1093/DH/DHT024","DOIUrl":"https://doi.org/10.1093/DH/DHT024","url":null,"abstract":"This paper examines the tumultuous relationship between the World Bank and the U.S. government during the 1970s. Drawing on previously untapped documents from the bank archives, it details the rise of U.S. opposition to the bank in the 1970s and describes the resistance by the bank’s president, former U.S. secretary of defense Robert McNamara, to American efforts to influence the organization during the time. A study of the bank’s relationship with Chile in the early 1970s demonstrates how the organization’s behavior was guided as much by internal factors — in this case a desire to maintain its creditworthiness — as it was the result of pressure from the U.S. government. Nevertheless, the article concludes that U.S. support remained critical to the bank and, as such, the organization’s autonomy was significantly bounded.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"181 4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116416020","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Michael G. Findley, Richard A. Nielsen, T. Candland, D. Nielson, Z. Davis
{"title":"Foreign Aid Shocks as a Cause of Violent Armed Conflict","authors":"Michael G. Findley, Richard A. Nielsen, T. Candland, D. Nielson, Z. Davis","doi":"10.2139/ssrn.1759410","DOIUrl":"https://doi.org/10.2139/ssrn.1759410","url":null,"abstract":"In this study we resolve part of the confusion over how foreign aid affects armed conflict. We argue that aid shocks – severe decreases in aid revenues – inadvertently shift the domestic balance of power and potentially induce violence. During aid shocks, potential rebels gain bargaining strength vis-à-vis the government. To appease the rebels, the government must promise future resource transfers, but the government has no incentive to continue its promised transfers if the aid shock proves to be temporary. With the government unable to credibly commit to future resource transfers, violence breaks out. Using AidData’s comprehensive dataset of bilateral and multilateral aid from 1981-2005, we evaluate the effects of foreign aid on violent armed conflict. In addition to rare-event logit analysis, we employ matching methods to account for the possibility that aid donors anticipate conflict. The results show that negative aid shocks significantly increase the probability of armed conflict onset.","PeriodicalId":309442,"journal":{"name":"PSN: Foreign Aid (Topic)","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133349319","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}