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Aid Supplies Over Time: Addressing Heterogeneity, Trends, and Dynamics

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  • Jones, Sam

Abstract

What determines how much foreign aid donors provide? Existing answers to this question point to a complex range of influences. However, the tasks of distinguishing between long- and short-run factors, as well as differences between donors, have not been adequately addressed. Taking advantage of data spanning nearly 50years, this paper uses panel cointegration techniques to consider these issues. The analysis provides clear evidence for heterogeneity both between donors and over time, bandwagon effects, and a growing influence of security considerations in aid provision. Domestic macroeconomic shocks have a moderate but delayed effect on aid disbursements.

Suggested Citation

  • Jones, Sam, 2015. "Aid Supplies Over Time: Addressing Heterogeneity, Trends, and Dynamics," World Development, Elsevier, vol. 69(C), pages 31-43.
    • Handle: RePEc:eee:wdevel:v:69:y:2015:i:c:p:31-43
    DOI: 10.1016/j.worlddev.2013.12.014
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    Cited by:

    1. Alessandro De Matteis, 2018. "Follow the leader! The peer effect in aid supply decisions," Development Policy Review, Overseas Development Institute, vol. 36(6), pages 631-648, October.
    2. Abiola Abidemi Akinsanya, 2020. "Understanding the Role of Aid for Trade in Enhancing Corridor Development and Regional Integration in West Africa: Lessons and Policy Directions," Advances in African Economic, Social and Political Development, in: Gbadebo O.A. Odularu & Mena Hassan & Musibau Adetunji Babatunde (ed.), Fostering Trade in Africa, pages 183-211, Springer.
    3. Lim, King Yoong & Liu, Chunping, 2024. "Aid and developing regional integration," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 756-776.
    4. Marina Murat, 2017. "Foreign Aid and responsiveness of bilateral refugee inflows," Department of Economics 0113, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    5. Marina Murat, 2020. "Foreign aid, bilateral asylum immigration and development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 79-114, January.
    6. Graziella Bertocchi & Arcangelo Dimico & Francesco Lancia & Alessia Russo, 2017. "Youth Enfranchisement, Political Responsiveness, and Education Expenditure: Evidence from the U.S," Center for Economic Research (RECent) 130, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    7. Marina Murat, 2017. "Foreign aid and asylum immigration. Does development matter?," Center for Economic Research (RECent) 133, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    8. Jones, Sam & Tarp, Finn, 2016. "Does foreign aid harm political institutions?," Journal of Development Economics, Elsevier, vol. 118(C), pages 266-281.
    9. Marina Murat, 2017. "Foreign aid and asylum immigration. Does development matter?," Department of Economics 0120, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    10. Jones, Sam & Tarp, Finn, 2016. "Does foreign aid harm political institutions?," Journal of Development Economics, Elsevier, vol. 118(C), pages 266-281.
    11. Sèna Kimm Gnangnon, 2018. "Donors’ Trade and Their Supply of Development Aid Related to the Trade Sector: Does Donors’ Output Gap Matter?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 9(01n02), pages 1-30, February.
    12. Sena Kimm Gnangnon, 2019. "De Facto Fiscal Space in Donor-countries and Their Aid Supply: To What Extent is Trade-related Aid Supply Affected?," South Asian Journal of Macroeconomics and Public Finance, , vol. 8(1), pages 1-25, June.
    13. Johannes Jakubik & Stefan Feuerriegel, 2022. "Data‐driven allocation of development aid toward sustainable development goals: Evidence from HIV/AIDS," Production and Operations Management, Production and Operations Management Society, vol. 31(6), pages 2739-2756, June.

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