Aid Supplies Over Time: Accounting for Heterogeneity, Trends, and Dynamics

Edward Samuel Jones

Aid Supplies Over Time: Accounting for Heterogeneity, Trends, and Dynamics

Abstract

The recent financial crisis has rekindled interest in the foreign aid supply behaviour of bilateral donors. Using the latest data covering the period 1960-2009, this paper examines how such behaviour is related to domestic factors. Based on a simple empirical model, a distinction is made between long-run supply trends and short-run dynamics, which motivates use of error correction methods. Panel econometric techniques are employed that are consistent in the presence of parameter heterogeneity and cross-section dependence. Results support the error correction framework, but point to very substantial heterogeneity between countries. There is also good evidence that donor behaviour continues to evolve over time. As such, past trends in aid supplies are unlikely to provide a good guide to those of the future.

Originalsprog	Engelsk
Udgivelsessted	Helsinki
Udgiver	UNU-WIDER
Antal sider	28
ISBN (Trykt)	978-9292303679
Status	Udgivet - 2011

Emneord

Det Samfundsvidenskabelige Fakultet

Adgang til dokumentet

http://www.wider.unu.edu/publications/working-papers/2011/en_GB/wp2011-004/_files/84942508794445943/default/wp2011-004.pdf

Citationsformater

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