A dynamic model of foreign aid allocation

Fumitaka, Furuoka (2008) A dynamic model of foreign aid allocation. Economics Bulletin, 15 (8). ISSN 1545-2921

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Abstract

This paper uses the Generalized Method of Moments (GMM)-type of estimator of Arellano and Bond (1991) to analyze the dynamics of adjustment in foreign aid allocation over the period 2000-2005. The empirical findings reveal a complex nature of foreign aid allocations. On the one hand, the static panel data models indicated that aid donors tended to provide . larger amounts of foreign aid to the poorer developing nations which were in a greater need, for the development assistance. On the other hand, the dynamic panel data models indicated contradicted results, where relatively wealthy developing countries have received larger amounts of foreign aid.

Item Type:Article
Uncontrolled Keywords:Dynamic model, Foreign aid allocation
Subjects:H Social Sciences > HC Economic History and Conditions
Divisions:SCHOOL > School of Business and Economics
ID Code:2679
Deposited By:IR Admin
Deposited On:04 Apr 2011 17:08
Last Modified:30 Dec 2014 12:42

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