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Aid Effort and its Determinants

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  • Jeffery I. Round
  • Matthew Odedokun

Abstract

The paper empirically explores the factors that could have accounted for the generally declining aid effort (defined as the generosity ratio, or the share of GDP given as aid) of bilateral donors over the last three decades. Annual panel data over 1970-2000 period for the 22 DAC members are used in a series of regressions. The findings suggest the existence of progressivity of aid in relation to donor income. There is also evidence of the economies of scale, in the sense that the share of aid in income decreases with growth in the size of donor country population.

Suggested Citation

  • Jeffery I. Round & Matthew Odedokun, 2003. "Aid Effort and its Determinants," WIDER Working Paper Series DP2003-03, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2003-03
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2003-03.pdf
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    Cited by:

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    5. Fuchs, Andreas & Dreher, Axel & Nunnenkamp, Peter, 2014. "Determinants of Donor Generosity: A Survey of the Aid Budget Literature," World Development, Elsevier, vol. 56(C), pages 172-199.
    6. Round, Jeffery I. & Odedokun, Matthew, 2004. "Aid effort and its determinants," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 293-309.
    7. Raddatz, Claudio, 2007. "Are external shocks responsible for the instability of output in low-income countries?," Journal of Development Economics, Elsevier, vol. 84(1), pages 155-187, September.
    8. Travis Wiseman & Andrew Young, 2015. "Is foreign aid a pure public good for donor country citizens?," Constitutional Political Economy, Springer, vol. 26(4), pages 421-433, December.
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    10. Ali, Murad, 2018. "Monitoring and evaluation in South-South Cooperation: the case of CPEC in Pakistan," IDOS Discussion Papers 1/2018, German Institute of Development and Sustainability (IDOS).

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