This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient even without fixed costs, and the inefficiency increases in the equality of donors'...

This paper analyzes whether Chinese aid and other forms of official finance affect structural transformation in low- and-middle income countries. Specifically, we employ an instrumental variables (IV) approach to causally analyze the effect on the Economic Complexity Index of 98 recipient...

China and India increasingly provide aid and credit to developing countries. This paper explores whether India uses these financial instruments to compete for geopolitical and commercial influence with China (and vice versa). To do so, we build a new geocoded dataset of Indian...

This paper presents an overview of the different definitions of and conceptual approaches to empowerment. It was produced for the Swiss Agency for Development and Cooperation (SDC) following publication of an independent evaluation of SDC's application of empowerment approaches in its...

Everyone knows that aid is not working as intended, and that something must change. The big question is how to change the status quo. The current international aid debate is characterized by dichotomies and over-simplified generalizations. In order to push the debate forward and identify...

Foreign aid from China is often characterized as "rogue aid" that is not guided by recipient need but by China's national interests alone. However, no econometric study so far confronts this claim with data. We make use of various datasets, covering the 1956-2006 period, to empirically test to...