Aid Supplies Over Time: Accounting for Heterogeneity, Trends, and Dynamics
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Aid Supplies Over Time : Accounting for Heterogeneity, Trends, and Dynamics . / Jones, Edward Samuel.
Helsinki : UNU-WIDER, 2011.Research output: Working paper › Research
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TY - UNPB
T1 - Aid Supplies Over Time
T2 - Accounting for Heterogeneity, Trends, and Dynamics
AU - Jones, Edward Samuel
N1 - JEL classification: F35, C23, F42
PY - 2011
Y1 - 2011
N2 - 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.
AB - 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.
KW - Faculty of Social Sciences
M3 - Working paper
SN - 978-9292303679
BT - Aid Supplies Over Time
PB - UNU-WIDER
CY - Helsinki
ER -
ID: 37806417