Handbook on the economics of foreign aid

It would be fair to say that foreign aid today is one of the most important factors in international relations and in the national economy of many countries – as well as one of the most researched fields in economics. Although much has been written on the subject of foreign aid, this book contributes by taking stock of knowledge in the field, with chapters summarizing long-standing debates as well as the latest advances. Several contributions provide new analytical insights or empirical evidence on different aspects of aid. As a whole, the book demonstrate how researchers have dealt with increasingly complex issues over time – both theoretical and empirical – on the allocation, impact, and efficacy of aid, with aid policies placed at the center of the discussion.

Cover -- Copyright -- Contents -- Contributors -- Acknowledgements -- Abbreviations -- 1 Introduction -- PART I AID FLOWS AND THE ALLOCATION OF AID -- 2 Performance-based allocation (PBA) of foreign aid: still alive? -- 3 Aid and reverse flows: a global analysis -- 4 Determining aid allocation decision-making: towards a comparative sectored approach -- 5 Samaritan's dilemma, time-inconsistency and foreign aid: a review of theoretical models -- 6 MDGs and international cooperation: an analysis of private and public aid and the role of education -- 7 Geographical allocation of aid: lessons from political economy -- 8 China's aid and FDI flows to Africa: strategic interest or economic motivation? -- PART II AID AND TRADE -- 9 Inter-linkages of foreign aid and trade policy in trade-theoretic frameworks -- 10 Aid for trade: assessing the effects on recipient exports of manufactures and primary commodities to donors and non-donors -- 11 Aid for trade: the case of Asia and Oceania nations -- 12 The trade effects of foreign aid: an empirical perspective -- 13 Foreign aid, international trade, and financial crises: a developing country perspective -- PART III IMPACT OF AID -- 14 The macroeconomic impact of aid in recipient countries: old wine in new bottles? -- 15 Foreign aid, economic growth, FDI, and trade openness in lower middle-income countries: a dynamic panel data analysis -- 16 Informal influence on multilateral lending: the case of the Inter-American Development Bank -- 17 Donors helping themselves -- 18 Aid and corruption: an incentive problem -- 19 The evolving debate on the effect of foreign aid on corruption and institutions in Africa -- PART IV AID EFFECTIVENESS -- 20 Finally a breakthrough? The recent rise in the size of the estimates of aid effectiveness* -- 21 On the heterogeneous impact of aid on growth: a review of the evidence