The autoregressive distributed lag (ARDL) procedure is used to examine co-integration and the subsequent short-run and long-run effects. Additionally, the model incorporates per capita income, financial development, and crisis as a structural dummy; and the presence of threshold effect on aid inflows is examined. The results show that procurement legislation, financial development, per capita income and crisis have a long-run association with aid inflows. The new public procurement legislation has a positive effect on aid inflows from Australia, the EU, Germany, and the total aid. In the short-run, procurement legislation has a positive effect on aid inflows from the Republic of Korea only; and the procurement policy and financial development have a long-run positive effect on aid inflows to Fiji. Overall, improved procurement policies, a well-developed financial sector and a reasonable level of growth is necessary to bolster aid inflows, whereas political uncertainty and global financial crisis has a retarding effect on aid inflows.