Issues related to the volatility of aid flows are now becoming crucial in view of their relevance to the achievement of the Millennium Development Goals. The paper examines aid volatility using data for 66 aid recipients over the period 1973-2002. We improve upon earlier work in this important...

This paper explores aid effectiveness by studying the effect of aid, aid volatility, and key development indicators, focusing on safe access to water and sanitation (W&S) in both urban and rural areas. Despite the importance of official development assistance (ODA) for these two subsectors,...

This paper explores aid effectiveness by studying the effect of aid, aid volatility, and key development indicators, focusing on safe access to water and sanitation (W&S) in both urban and rural areas. Despite the importance of official development assistance (ODA) for these two subsectors,...

Since the late 1990s a selection on policy approach to aid was advocated such that more aid should be allocated to countries with good policies. A number of donors accepted this recommendation, including the World Bank, but there is little evidence that this has occurred. Donors, including the...

This paper reviews both the literature on aid volatility and also adds to that literature. In general, the focus of this literature has been on the volatility of overall aid, while we focus more on the volatility of the individual aid sectors, e.g., education aid. In doing this, detailed use is...

Aid is an important resource for developing countries. Many small island states (including those in the Pacific) are highly reliant on aid to supplement meagre government resources and other foreign capital inflows. This paper investigates the conditional volatility of aid (for bilateral aid...