In this study, we derive a poverty-minimizing allocation rule, based on which we assess the povertyefficiency of actual aid allocations, with a special focus on the comparative impact of new donors and new non-aid flows. The results suggest a substantial misallocation of aid. Our benchmark...

While existing research has suggested that delegating foreign aid allocation decisions to a multilateral aid fund may incentivize recipient countries to invest in bureaucratic quality, our analysis links the fund's decision rules to recipient-country investment by explicitly modeling the...

This paper looks into aid allocation in the response to multiple crises, focusing more specifically on the cases of concomitance between so-called 'natural' hazard/disaster and conflict situations. Over 150 natural disasters have occurred alongside complex political crises in the past seven...

Donors of foreign aid increasingly claim to consider gender inequality in the recipient countries to be a serious concern. While aid specifically to promote gender equality receives only a tiny share of aid budgets, allocations to education, health, and civil society projects could be affected...

This paper provides an historical overview of aid flows to North Africa. It assesses the aid allocation process and argues that past aid flows to the region have been heavily influenced by donor political interests. This has reduced the effectiveness of aid which, with the exception of Tunisia,...

The paper performs aid allocation analysis using OECD-DAC data covering 20 aid donors and 176 recipients over the period 1980-2003. We improve upon earlier work in this area by employing inter alia the variable ‘past outcome’ measuring aid effectiveness in order to link together aid...

We assess whether bilateral and multilateral donors of foreign aid specialized and coordinated their activities with other donors as agreed in the Paris Declaration of 2005. We account for donor heterogeneity, varying aid priorities and recipient characteristics in order to isolate changes in...

This paper assesses the validity of the perception-based governance indicators used by the US Millennium Challenge Account (MCA) for aid allocation decisions. By conducting Explanatory and Confirmatory Factor Analysis of data from 1996 to 2009, we find that although the MCA purports to measure...

The targeting of foreign aid within recipient countries is largely unexplored territory. We help close this gap in empirical research on aid allocation by employing Poisson estimations on the determinants of the World Bank's choice of project locations at the district level in India. The...

Focusing on seven bilateral donors over a 25 year period, the paper answers 4 questions related to aid allocation practice. Questions one and two examine allocation differences between donors and time periods. Questions three and four relate to changes in poverty and policy selectivity. To...