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Explaining development aid allocation by growth

Doucouliagos, Hristos and Paldam, Martin 2013, Explaining development aid allocation by growth, Journal of entrepreneurship and public policy, vol. 2, no. 1, pp. 21-41, doi: 10.1108/20452101311318657.

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Title Explaining development aid allocation by growth
Author(s) Doucouliagos, Hristos
Paldam, Martin
Journal name Journal of entrepreneurship and public policy
Volume number 2
Issue number 1
Start page 21
End page 41
Total pages 21
Publisher Emerald Group Publishing
Place of publication Bingley, Eng.
Publication date 2013
ISSN 2045-2101
2045-211X
Summary Purpose: The purpose of this paper is to study a little researched relation: the relation from economic growth in a less developed country to the development aid it receives. Does economic growth influence donor aid allocation decisions? Design/methodology/approach: The authors’ apply two different methodologies. First, a quantitative and systematic review is presented of the literature of 30 empirical studies of aid allocation where a growth coefficient is estimated. Second, a primary study is presented of the data using a panel of 147 countries for the period 1967-2004. Findings: The growth-aid relation should be negative if humanitarian motives dominate aid allocation decisions. The result from both the meta-analysis and the primary data analysis suggests a very small effect between lagged growth and aid allocations, with a dominating positive sign. This result appears to be driven partly by the large development banks. Originality/value: No attempt has previously been made to summarize the literature on growth as a motive for giving aid. This paper offers the first attempt to do so, by presenting a meta-analysis of the empirical literature, as well as analysis of the primary data.
Language eng
DOI 10.1108/20452101311318657
Field of Research 1401 Economic Theory
1402 Applied Economics
Socio Economic Objective 0 Not Applicable
HERDC Research category C1.1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2013, Emerald Group Publishing Limited.
Persistent URL http://hdl.handle.net/10536/DRO/DU:30091448

Document type: Journal Article
Collection: Department of Economics
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