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Is Donors' Concern about the Fungibility of Foreign Aid Justified?: A Panel Data Analysis
This paper addresses donors' policy of providing external assistance to developing countries using an inter-temporal framework, over a finite horizon. While the framework adopted tracks the motivation of providing foreign aid, it is altogether consistent with the paradigm of forwardlooking gove...
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| Published in: | The Journal of developing areas 2010-03, Vol.43 (2), p.299-311 |
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| Main Authors: | , |
| Format: | Article |
| Language: | English |
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| cited_by | cdi_FETCH-LOGICAL-c3791-4a0cf93e7d5d8ff99e14300157afa0464df84df078cf636bc9ded09fcbd1d3473 |
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| container_end_page | 311 |
| container_issue | 2 |
| container_start_page | 299 |
| container_title | The Journal of developing areas |
| container_volume | 43 |
| creator | Sobhee, Sanjeev K. Nath, Shyam |
| description | This paper addresses donors' policy of providing external assistance to developing countries using an inter-temporal framework, over a finite horizon. While the framework adopted tracks the motivation of providing foreign aid, it is altogether consistent with the paradigm of forwardlooking governments in developed economies. Given uncertainties surrounding income flows, and the gradual convergence towards generational accounting conventions in public finances of donor countries, an attempt is made to empirically ascertain whether foreign assistance is provided on a random basis or is backed by a systematic foreign aid policy. Our findings from a panel of 27 developing countries clearly contest the hypothesis that grants are provided on a random basis. This would otherwise suggest the existence of a consistent policy characterising granting behaviour, urging the need for recipient governments to incorporate grants in their budgetary decision-making. |
| doi_str_mv | 10.1353/jda.0.0071 |
| format | article |
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| fulltext | fulltext |
| identifier | ISSN: 0022-037X |
| ispartof | The Journal of developing areas, 2010-03, Vol.43 (2), p.299-311 |
| issn | 0022-037X 1548-2278 1548-2278 |
| language | eng |
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| source | EBSCOhost Business Source Ultimate; International Bibliography of the Social Sciences (IBSS); JSTOR Archival Journals and Primary Sources Collection; ABI/INFORM Global |
| subjects | Critical values Decision making Developed countries Developing countries Economic development Economic uncertainty Expenditures Foreign aid Government Government budgets Hypotheses LDCs Political aspects Political economy Public finance Root test Studies Volatility World Bank |
| title | Is Donors' Concern about the Fungibility of Foreign Aid Justified?: A Panel Data Analysis |
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