View metadata

dc.titleAid Effectiveness: Politics Matters
dc.contributor.authorBobba, Matteo
dc.contributor.authorPowell, Andrew
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2011-02-07T00:00:00
dc.date.issue2007-01-01T00:00:00
dc.description.abstractThe literature on aid effectiveness has focused more on recipient policies than the determinants of aid allocation yet a consistent result is that political allies obtain more aid from donors than non-allies. This paper shows that aid allocated to political allies is ineffective for growth, whereas aid extended to countries that are not allies is highly effective. The result appears to be robust across different specifications and estimation techniques. In particular, new methods are employed to control for endogeneity. The paper suggests that aid allocation should be scrutinized carefully to make aid as effective as possible.
dc.identifier.doihttp://dx.doi.org/10.18235/0010874
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Aid-Effectiveness-Politics-Matters.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectPublic Utility
dc.subject.jelcodeC23 - Panel Data Models • Spatio-temporal Models
dc.subject.jelcodeO1 - Economic Development
dc.subject.jelcodeO10 - Economic Development: General
dc.subject.jelcodeO11 - Macroeconomic Analyses of Economic Development
dc.subject.jelcodeO12 - Microeconomic Analyses of Economic Development
dc.subject.jelcodeO13 - Agriculture • Natural Resources • Energy • Environment • Other Primary Products
dc.subject.jelcodeO14 - Industrialization • Manufacturing and Service Industries • Choice of Technology
dc.subject.jelcodeO15 - Human Resources • Human Development • Income Distribution • Migration
dc.subject.jelcodeO16 - Financial Markets • Saving and Capital Investment • Corporate Finance and Governance
dc.subject.jelcodeO17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements
dc.subject.jelcodeO18 - Urban, Rural, Regional, and Transportation Analysis • Housing • Infrastructure
dc.subject.jelcodeO19 - International Linkages to Development • Role of International Organizations
dc.subject.jelcodeO2 - Development Planning and Policy
dc.subject.jelcodeO20 - Development Planning and Policy: General
dc.subject.jelcodeO21 - Planning Models • Planning Policy
dc.subject.jelcodeO22 - Project Analysis
dc.subject.jelcodeO23 - Fiscal and Monetary Policy in Development
dc.subject.jelcodeO24 - Trade Policy • Factor Movement Policy • Foreign Exchange Policy
dc.subject.jelcodeO25 - Industrial Policy
dc.subject.jelcodeO29 - Development Planning and Policy: Other
dc.subject.jelcodeO4 - Economic Growth and Aggregate Productivity
dc.subject.jelcodeO40 - Economic Growth and Aggregate Productivity: General
dc.subject.jelcodeO41 - One, Two, and Multisector Growth Models
dc.subject.jelcodeO42 - Monetary Growth Models
dc.subject.jelcodeO43 - Institutions and Growth
dc.subject.jelcodeO44 - Environment and Growth
dc.subject.jelcodeO47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence
dc.subject.jelcodeO49 - Economic Growth and Aggregate Productivity: Other
dc.subject.keywordsWP-601
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-N2639
Return to Publication