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Modelling of aid motivation using time series data: The case of Papua New Guinea

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  • Rukmani Gounder

Abstract

In 1984 the Jackson Report on Australia's overseas aid programme, in part, focused attention on objectives and priorities in the aid programme. There is a unique aid relationship between Australia and Papua New Guinea. This paper analyses what motivates Australia's provision of aid. The aid motivation literature addresses this issue by employing cross-section data to all recipient countries, thus imposing uniformity on them. It is argued in this study that time series analysis is required to answer the question of aid motivation. The econometric results obtained by testing the recipient need and donor interest models provide support for both. Applications of non-nested tests indicate acceptance of the recipient need model and rejection of the donor interest model.

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  • Rukmani Gounder, 1999. "Modelling of aid motivation using time series data: The case of Papua New Guinea," Oxford Development Studies, Taylor & Francis Journals, vol. 27(2), pages 233-250.
  • Handle: RePEc:taf:oxdevs:v:27:y:1999:i:2:p:233-250
    DOI: 10.1080/13600819908424175
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    1. Andrew C. Harvey, 1990. "The Econometric Analysis of Time Series, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 026208189x, April.
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    Cited by:

    1. Alessia Isopi & George Mavrotas, 2006. "Aid Allocation and Aid Effectiveness: An Empirical Analysis," WIDER Working Paper Series RP2006-07, World Institute for Development Economic Research (UNU-WIDER).
    2. Mark McGillivray, 2003. "Aid Effectiveness and Selectivity: Integrating Multiple Objectives into Aid Allocations," WIDER Working Paper Series DP2003-71, World Institute for Development Economic Research (UNU-WIDER).
    3. Mark McGillivray, 2003. "Efficacité de l'aide et sélectivité : vers un concept élargi," Revue d’économie du développement, De Boeck Université, vol. 11(4), pages 43-62.
    4. Sobhee, Sanjeev K. & Nath, Shyam, 2007. "Growth, Income Inequality and Aid Giving: Looking for an Aid-Kuznets Curve," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 3(1-2), pages 1-11.
    5. Pincin, Jared, 2013. "Political power and aid tying practices in the development assistance committee countries," MPRA Paper 49806, University Library of Munich, Germany.
    6. Simon Feeny & Mark McGillivray, 2008. "What Determines Bilateral Aid Allocations? Evidence From Time Series Data," Review of Development Economics, Wiley Blackwell, vol. 12(3), pages 515-529, August.
    7. Simon Feeny, 2003. "What Determines Foreign Aid to Papua New Guinea? An Inter-temporal Model of Aid Allocation," WIDER Working Paper Series DP2003-05, World Institute for Development Economic Research (UNU-WIDER).
    8. Arvin, B. Mak & Kayani, Zafar, 2009. "Donor Motivation of Inter-Temporal Foreign Assistance to Nepal," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 5(1-2), pages 1-10, March.
    9. Chauvet, Lisa, 2003. "Socio-political instability and the allocation of international aid by donors," European Journal of Political Economy, Elsevier, vol. 19(1), pages 33-59, March.
    10. Jean-David Naudet & Denis Cogneau & Lisa Chauvet, 2008. "Sélectivité et égalité des chances dans l’allocation de l’aide internationale. Une analyse de la dernière décennie," Économie et Prévision, Programme National Persée, vol. 186(5), pages 23-38.
    11. Pincin, Jared, 2012. "Political power and aid tying practices in the development assistance committee countries," MPRA Paper 39463, University Library of Munich, Germany.
    12. Mark McGillivray, 2005. "What determines African bilateral aid receipts?," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 1003-1018.
    13. Mark McGillivray, 2003. "Modelling Aid Allocation: Issues, Approaches And Results," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(1), pages 171-188, June.

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