A Foreign-Policy Model of the Distribution of British Bilateral Aid, 1960–70

McKinlay, Robert D.; Little, Richard

doi:10.1017/s0007123400001393

Cited by 108 publications

(67 citation statements)

References 6 publications

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“…Studies by Maizels and Nissanke (MN, 1984), McKinlay and Little (ML, 1977, 1978a, 1978b, 1979, Mosley (1985Mosley ( ,1987, Frey and Schneider (1986) and Trumbull and Wall (1994) analyze the determinants of foreign aid using cross-country regressions. The series of studies by ML and MN focus on bilateral aid patterns and they attempt to measure whether "recipient needs" or "donor's interest" are they key factors motivating international aid flows.…”

Section: The Motives For Giving Aidmentioning

confidence: 99%

Politics and the effectiveness of foreign aid

Boone¹

1996

European Economic Review

1,010

485

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Critics of foreign aid programs have long argued that poverty reflects government failure. In this paper I analyze the effectiveness of foreign aid programs to gain insights into political regimes in aid recipient countries. My analytical framework shows how three stylized political/economic regimes labeled egalitarian, elitist and laissez-faire would use foreign aid. I then test reduced form equations using data on nonmilitary aid flows to 96 countries. I find that models of elitist political regimes best predict the impact of foreign aid. Aid does not significantly increase investment and growth, nor benefit the poor as measured by improvements in human development indicators, but it does increase the size of government. I also find that the impact of aid does not vary according to whether recipient governments are liberal democratic or highly repressive. But liberal political regimes and democracies, ceteris paribus, have on average 30% lower infant mortality than the least free regimes. This may be due to greater empowerment of the poor under liberal regimes even though the political elite continues to receive the benefits of aid programs. An implication is that short term aid targeted to support new liberal regimes may be a more successful means of reducing poverty than current programs.

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Section: The Motives For Giving Aidmentioning

confidence: 99%

Politics and the effectiveness of foreign aid

Boone¹

1996

European Economic Review

1,010

485

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“…The interest in this topic began in the mid-1950s with Behrman (1955/6). Broadly speaking, up to the work of McKinley and Little (1977, 1978a, 1978b, 1979 the analysis was rather anecdotal and based on simple empirical observation 1 (Gounder 1994). McKinley and Little have introduced econometrics in the debate on the factors influencing aid allocation and have structured the discussion around two alternative determinants: the 'recipient need' and the 'donor interest'.…”

Section: Introductionmentioning

confidence: 99%

Bilateral donors' aid allocation decisions—a three-dimensional panel analysis

Berthélemy¹,

Tichit²

2004

International Review of Economics & Finance

343

274

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The present paper adds to the already large existing literature on aid distribution as it runs an equation on bilateral aid allocation on a very rich dataset, covering 20 years , 22 donors and 137 recipients, which permits a three-dimensional panel study (recipient-year-donor) and allows for comparisons between the different donors. Thanks to the length of the observation period, it is also possible to compare aid allocation policy in the 1980s and in the 1990s to test whether the collapse of the communist regime affected the donors' choices. Both the self-interest of donors, recipient needs and policy outcome variables are introduced. As a first result, the end of the cold war has reduced the bias towards former colonial links, to favour trade partners. Moreover, donors reward good economic policy outcomes since 1990. Second, aid is found generally progressive, for most donors. It appears also that most donors pay a great attention to political governance when making their aid decision.

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“…The first studies that test the -donor interest‖ against the -recipient need‖ model are McKinlay and Little (1977, 1978a, 1978b, 1979. The authors analyze the two models for four donors (United States, France, Germany, United Kingdom) using data for [1960][1961][1962][1963][1964][1965][1966][1967][1968][1969][1970] and find that the donor interest model performed better than the recipient need model for all four donors.…”

Section: A Factors Affecting Bilateral Aid Allocationmentioning

confidence: 99%

Do Remittances Reduce Aid Dependency?

Goff

Kpodar²

2011

IMF Working Papers

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Aid has been for decades an important source of financing for developing countries, but more recently remittance flows have increased rapidly and are beginning to dwarf aid flows. This paper investigates how remittances affect aid flows, and how this relationship varies depending on the channel of transmission from remittances to aid. Buoyant remittances could reduce aid needs when human capital improves and private investment takes off. Absent these, aid flows could still drop as remittances may dampen donors' incentive to scale up aid. Concurrently, remittances could be positively associated with aid if migrants can influence aid policy in donor countries. Using an instrumental variable approach with panel data for a sample of developing countries from 1975-2005, the baseline results show that remittances actually increase aid dependency. However, a refined model controlling for the channels of transmission from remittances to aid reveals that remittances lead to lower aid dependency when they are invested in human and physical capital rather than consumed. JEL Classification Numbers: F35, F24, O10

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A Foreign-Policy Model of the Distribution of British Bilateral Aid, 1960–70

Cited by 108 publications

References 6 publications

Politics and the effectiveness of foreign aid

Politics and the effectiveness of foreign aid

Bilateral donors' aid allocation decisions—a three-dimensional panel analysis

Do Remittances Reduce Aid Dependency?

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