We argue that the nature of aid flows early on in a bilateral partnership may be different from that at a later stage. Commercial and strategic interests may carry particular weight after a significant regime change when new relationships need to be established, whereas development concerns come...

The introduction of good governance in the economic growth and development agenda in the last two decades, along with the failure of aid conditionality to produce positive growth results, motivated ex-post selectivity instead of the ex-ante conditionality as a new approach to aid allocation....

This paper introduces a framework for studying the optimal dynamic allocation of foreign aid among multiple recipients. We pose the problem as one of weighted global welfare maximization. A donor in the North chooses an optimal path for international transfers, anticipating that consumption and...

We argue that the nature of aid flows early on in a bilateral partnership may be different from that at a later stage. Commercial and strategic interests may carry particular weight after a significant regime change when new relationships need to be established, whereas development concerns come...

In this paper we investigate the effectiveness of development aid in recipient countries. Specifically, we analyze the relationship between per-capita income and foreign aid for a maximum of 131 recipient countries over the 1960 to 2006 period. We employ annual data and 5-year averages and,...

This paper analyzes the selection and allocation decisions of major and like-minded bilateral donors as regards development assistance for health for the period of 1990 till 2007. The central question is to what extent health indicators, reflecting the health objectives stated in the Millennium...

This paper empirically investigates whether donor countries punish sovereign defaults by reducing foreign aid ows. Our findings reject the hypothesis formulated in the theoretical literature that a default leads to a loss of foreign aid for the defaulting country. Creditor countries directly...

This paper analyzes the targeting of development assistance for health across countries in a multivariate regression framework, based on data from 22 bilateral donors to 160 recipients between 1990 and 2007. Donor characteristics, recipient characteristics and the donor-recipient-relationship...

This paper analyzes the determinants of international financial institutions (IFIs)'s lending decisions to Pakistan. At the example of three major IFIs, the World Bank, IMF and ADB, this paper suggests that political economic factors, notably bureaucratic interest of international civil servants...

This paper presents a two-sector small semi-open economy Ramsey growth model involving foreign aid as an input in the production function. An activist government allocates this input endogenously across sectors and optimizes policies in a non-standard way. Once calibrated, mainly on countries...