Modelling aid allocation : issues, approaches and results

McGillivray, Mark 2003, Modelling aid allocation : issues, approaches and results, Journal of Economic Development, vol. 28, no. 1, pp. 171-188.

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Title Modelling aid allocation : issues, approaches and results
Author(s) McGillivray, Mark
Journal name Journal of Economic Development
Volume number 28
Issue number 1
Start page 171
End page 188
Publisher Chung-Ang University
Place of publication Seoul, Korea
Publication date 2003
ISSN 0254-8372
Keyword(s) Aid Allocation
Donor Interest
Recipient Need
Tobit Models
Regression
Summary There is a widespread view that political criteria have received less emphasis in aid allocation since the end of the cold war, with a greater share of aid subsequently being based on developmental criteria. An observed increase in aid effectiveness is attributed to this shift. A reasonably large literature on aid allocation supports this view: a number of influential, widely cited studies conclude that developmental criteria played no role in the 1970s and 1980s inter-recipient aid allocation. This paper argues that the shift is not as significant as commonly thought. It points to a number of methodological weaknesses in the dominant modelling approach used within the literature, showing that more rigorous econometric methods suggest that developmental criteria have had a larger influence on cold war period aid allocation than previously thought. An alternative interpretation of the observed increase in aid effectiveness is provided.
Language eng
Field of Research 140219 Welfare Economics
Socio Economic Objective 970114 Expanding Knowledge in Economics
HERDC Research category C3.1 Non-refereed articles in a professional journal
Persistent URL http://hdl.handle.net/10536/DRO/DU:30028859

Document type: Journal Article
Collection: Alfred Deakin Research Institute
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