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Governance and foreign aid in Pacific Island countries

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  • Azmat Gani

    (School of Economics, Faculty of Business and Economics, The University of South Pacific, Suva, Fiji Islands)

Abstract

This paper examines the relationship between indicators of governance and per capita foreign aid in a cross-section of seven PICs. Controlling for poor economic growth, foreign exchange shortage and small size, a fixed-effects model correcting for AR (1) errors is tested for the period 1996-2004 that incorporates five measures of governance. The findings here confirm that voice and accountability, rule of law and corruption are negatively correlated with per capita foreign aid. However, regulatory quality and government effectiveness are positively associated with per capita foreign aid. Some policy implications are drawn. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Azmat Gani, 2009. "Governance and foreign aid in Pacific Island countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(1), pages 112-125.
    • Handle: RePEc:wly:jintdv:v:21:y:2009:i:1:p:112-125
    DOI: 10.1002/jid.1480
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    References listed on IDEAS

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    Cited by:

    1. Aviral Kumar Tiwari & Mamoni Kalita, 2011. "Governance and Foreign Aid in ASIAN Countries," Economics Bulletin, AccessEcon, vol. 31(1), pages 453-465.
    2. Matthew Dornan & Jonathan Pryke, 2017. "Foreign Aid to the Pacific: Trends and Developments in the Twenty-First Century," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(3), pages 386-404, September.
    3. Chiraag Roy, 2020. "Rethinking Australia’s aid programme to Myanmar: Good governance and “informal constraints”," Development Policy Review, Overseas Development Institute, vol. 38(5), pages 630-645, September.
    4. Gurmeet Singh & Raghuvar Pathak & Rafia Naz, 2011. "Service Delivery Through E-Governance: Perception and Expectation of Customers in Fiji and PNG," Public Organization Review, Springer, vol. 11(4), pages 371-384, December.
    5. Mahadevan, Renuka & Asafu-Adjaye, John, 2013. "Exploiting comparative advantage in agriculture and resources: the way forward for Small Island States," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(3).
    6. Dornan, Matthew & Shah, Kalim U., 2016. "Energy policy, aid, and the development of renewable energy resources in Small Island Developing States," Energy Policy, Elsevier, vol. 98(C), pages 759-767.

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