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Donor coordination and specialization: Did the Paris declaration make a difference?

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  • Nunnenkamp, Peter
  • Öhler, Hannes
  • Thiele, Rainer

Abstract

We assess whether bilateral and multilateral donors of foreign aid specialized and coordinated their activities with other donors as agreed in the Paris Declaration of 2005. We account for donor heterogeneity, varying aid priorities and recipient characteristics in order to isolate changes in donor behaviour over time. Recent shifts in aid priorities, such as the rising importance of general budget support, have reduced the fragmentation of aid. Nevertheless, our results reveal that aid fragmentation persisted after the Paris Declaration and coordination among donors has even weakened.

Suggested Citation

  • Nunnenkamp, Peter & Öhler, Hannes & Thiele, Rainer, 2011. "Donor coordination and specialization: Did the Paris declaration make a difference?," Kiel Working Papers 1748, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1748
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    References listed on IDEAS

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    More about this item

    Keywords

    aid allocation; fragmentation; Theil index; donor coordination; overlaps; Paris Declaration;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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