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The Philippines` Absorptive Capacity for Foreign Aid

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  • Kang, Hyewon

Abstract

This study evaluates the Philippines` absorptive performance for foreign aid, particularly during the six-year period 2003 to 2008, and compare this to that of the previous period, 1986 to 1988. We observe that the country`s capacity to absorb foreign aid has declined during the period under study compared to that of the previous period. The study traces the causes of the reduction in aid absorptive capacity to several factors--both from the side of the recipient and donor country behavior--which negatively affected the aid absorptive capacity. The study discusses in detail these bottlenecks to aid absorption and provides policy recommendations to improve the country`s capacity for foreign aid absorption.

Suggested Citation

  • Kang, Hyewon, 2010. "The Philippines` Absorptive Capacity for Foreign Aid," Discussion Papers DP 2010-15, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2010-15
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    File URL: https://www.pids.gov.ph/publication/discussion-papers/the-philippines-absorptive-capacity-for-foreign-aid
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    Cited by:

    1. Briones, Roehlano M. & Quimba, Francis Mark A. & Bungcayao, Jonathan B. & Paglingayen, Joseph B. & Libunao, Ivee & Asuncion, Myrna B., 2011. "Assessing Development Strategies to Achieve the MDGs in Asia: Philippines (Final Report)," Discussion Papers DP 2011-03, Philippine Institute for Development Studies.
    2. Michael Appiah & Bright Akwasi Gyamfi & Tomiwa Sunday Adebayo & Festus Victor Bekun, 2023. "Do financial development, foreign direct investment, and economic growth enhance industrial development? Fresh evidence from Sub-Sahara African countries," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(2), pages 203-227, May.

    More about this item

    Keywords

    remittances; official development assistance; foreign aid; absorptive capacity; Philippines; Divide-by-N syndrome; donor's motivation;
    All these keywords.

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