File(s) under permanent embargo
Explaining development aid allocation by growth
journal contribution
posted on 2013-01-01, 00:00 authored by H Doucouliagos, M PaldamPurpose: 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.
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.
History
Journal
Journal of entrepreneurship and public policyVolume
2Issue
1Pagination
21 - 41Publisher
Emerald Group PublishingLocation
Bingley, Eng.Publisher DOI
ISSN
2045-2101eISSN
2045-211XLanguage
engPublication classification
C1.1 Refereed article in a scholarly journal; C Journal articleCopyright notice
2013, Emerald Group Publishing Limited.Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC