The aim of this paper is to determine the drivers of a donor's decision on the composition of aid. We apply a dataset on international post-disaster assistance between 2000 and 2007 that includes information on the channel (bilateral vs. multilateral) and type (cash vs. in-kind) of each aid...

Funding adaptation requires adequate governance and there are different ways to organise and channel the funds to where it is most efficient and most necessary. This paper investigates this issue and studies the practical implementation of a development under conditionality, namely...

Global flows of Official Development Assistance are large and there is a large literature devoted to testing the effectiveness of these large flows. While among the poorest and the top recipients of foreign aid, Small Island Developing States (SIDS) are usually left out in the aid effectiveness...

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...

Aid by altruistic donors may induce recipients to reduce their own contribution to development efforts in order to elicit more aid from donors. Help by well-intentioned donors may reduce the welfare of needy. Donors may not be able to deter deviant recipients as any punishment involves reducing...

We examine the allocation of net loans, grants and net transfers to IDA countries over the period 1982-2008 focusing on the role of debt, and debt sustainability, in the decisions of multilateral and bilateral donors. We estimate a dynamic panel of 75 IDA and IDA-Blend countries for the period...

China, still considered itself a developing country, is becoming an increasingly important ‘new’ donor for many African countries. Its own model of foreign assistance, providing aid in the form of economic cooperation based on the achievement of mutual economic benefits and on the principle...

In multiple regressions, explanatory variables with simple correlation coefficients with the dependent variable below 0.1 in absolute value (such as aid/gross domestic product (GDP) with GDP growth) face a problem of parameter identification. They may have very large, statistically significant,...

Managing and identifying risks are a key challenge for Low Income Countries (LICs), which are extremely vulnerable to exogenous shocks. However, the use of risk management tools by developing countries is quite limited. The paper discusses in which ways aid could strengthen the capacity of LICs...

We address the question of whether foreign aid helps attract foreign direct investment (FDI). This could be achieved if well targeted aid removed critical impediments to higher FDI inflows. In particular, test the hypothesis that aid for education is an effective means to increase FDI flows to...