This paper models the inter-temporal allocation of bilateral foreign development aid to developing countries. A formal theoretical framework is developed, in which aid is treated as a private good of the donor country bureaucratic group responsible for bilateral aid allocation. This model is...

Aid has been the principal source of development finance for the majority of developing countries over the past few decades. This has spawned a large literature on the effectiveness of aid, which remains essentially inconclusive. The empirical literature has tended to evaluate the impact of aid...

This paper examines inter-country inequalities in human well-being evident from PPP GDP per capita and three composite indicators of development levels proposed and reported by the United Nation's Devel opment Program (UNDP): the Human Development Index (HDI), the Gender-related Development...

Two findings have been common in the literature on the impact of foreign aid on public sector fiscal behaviour in developing countries. The first is that aid "sticks" to higher levels of recipient government expenditure, with aggregate expenditure often rising by more than the value of the aid...

It is clear from the implications of growth theory that the impact of aid depends on how it affects savings, investment and government behaviour. In respect of low-income countries, which are the principal aid recipients and the economies for which the issue of the impact of aid on growth is...