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Handbook on the Economics of Foreign Aid


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Contents: 1. Introduction B. Mak Arvin and Byron Lew PART I AID FLOWS AND THE ALLOCATION OF AID 2. Performance Based Allocation (PBA) of Foreign Aid: Still Alive? Patrick Guillaumont and Laurent Wagner 3. Aid and Reverse Flows: A Global Analysis Anupam Das and John Serieux 4. Determining Aid Allocation Decision-Making: Towards a Comparative Sectored Approach Caryn Peiffer and Constantine Boussalis 5. Samaritan's Dilemma, Time-Inconsistency and Foreign Aid: A Review of the Theoretical Models Alok Kumar 6. MDGs and International Cooperation: An Analysis of Private and Public Aid and the Role of Education Maria-Carmen Guisan, Eva Aguayo, and Pilar Exposito 7. Geographical Allocation of Aid: Lessons from Political Economy Sergio Tezanos Vazquez 8. China's Aid and FDI Flows to Africa: Strategic Interest or Economic Motivation? Byron Lew and B. Mak Arvin PART II AID AND TRADE 9. Inter-Linkages of Foreign Aid and Trade Policy in Trade-Theoretic Frameworks Sajal Lahiri 10. Aid for Trade: Assessing the Effects on Recipient Exports of Manufactures and Primary Commodities to Donors and Non-Donors Philipp Huhne, Birgit Meyer and Peter Nunnenkamp 11. Aid for Trade: The Case of Asia and Oceania Nations Rukmani Gounder 12. The Trade Effects of Foreign Aid - An Empirical Perspective Inmaculada Martinez-Zarzoso 13. Foreign Aid, International Trade, and Financial Crises: A Developing Country Perspective Jose Brambila-Macias, Isabella Massa, and Matthew Salois PART III IMPACT OF AID 14. The Macroeconomic Impact of Aid in Recipient Countries: Old Wine in New Bottles? George Mavrotas 15. Foreign Aid, Economic Growth, FDI, and Trade Openness in Lower Middle-Income Countries: A Dynamic Panel Data Analysis Rudra Pradhan and B. Mak Arvin 16. Informal Influence on Multilateral Lending: The Case of the Inter-American Development Bank Elizabeth Bland and Christopher Kilby 17. Donors Helping Themselves David Sogge 18. Aid and Corruption: an Incentive Problem Alessia Isopi 19. The Evolving Debate of the Effect of Foreign Aid on Corruption and Institutions in Africa Simplice A. Asongu PART IV AID EFFECTIVENESS 20. Finally a Breakthrough? The Recent Rise in the Size of the Estimates of Aid Effectiveness Hristos Doucouliagos and Martin Paldam 21. On the Heterogeneous Impact of Aid on Growth: A Review of the Evidence Lisa Chauvet 22. Aid, Growth, Policies, and Fragility Mark McGillivray and Simon Feeny 23. Does Real Exchange Rate Appreciation Undermine Aid Effectiveness? Evidence from Sub-Saharan Africa David Fielding and Fred Gibson 24. The Effects of Education Aid on Primary Schooling in Developing Countries Eskander Alvi and Debasri Mukherjee 25. A Case Study of Aid Effectiveness in Bangladesh: Development with Governance Challenges M.G. Quibria and Anika L. Islam 26. Foreign Aid to Foster Greener Cities: What Do We Know? Sandrine Kablan PART V AID POLICIES 27. Foreign Aid and Policy Coherence for Development Stephen Brown 28. Making Aid Work: Governance and Decentralization Gil S. Epstein and Ira N. Gang 29. Donor Competition for Influence in Recipient Countries Rachael Calleja and Dane Rowlands 30. The Rise of Multi-Bi Aid and the Proliferation of Trust Funds Bernhard Reinsberg, Katharina Michaelowa, and Vera Z. Eichenauer 31. Aid and Taxation Oliver Morrissey and Samantha Torrance 32. Aid and Microfinance Niels Hermes and Robert Lensink Index

About the Author

Edited by B. Mak Arvin, Professor of Economics and Byron Lew, Associate Professor of Economics, Trent University, Canada


`Today's questions regarding foreign aid centre around aid allocation dynamics, the impact on trade and growth for receivers as well as donors, and, quite frequently, on aid effectiveness. The inter-relationship between aid and politics are also topics of high interest. These are precisely the issues that the Handbook edited by B. Mak Arvin and Byron Lew deals with. In more than 30 contributions, some highly renowned development scholars use the theoretical state of the art combined with empirically based econometric approaches to analyse various issues in the foreign aid field. It is a great pleasure for science-oriented readers to find a wealth of findings derived from hard data and rigorous analytical methods. The book is an excellent contribution to the current foreign aid discussion.' -- Siegfried Schoenherr, Ifo Institute for Economic Research, Germany
`A title like Handbook on the Economics of Foreign Aid is ambitious; it promises coverage of literature that spans from theory to empirics, from macro to micro levels of analysis, from positive to normative economics. This Handbook fulfills this ambition 100 percent. It will be the single place that people will go to get a state-of-the-art survey of a particular issue. Some chapters are written by established experts in the area, others by newcomers that bring a fresh view on the issues involved. All in all, a book that future researchers in foreign aid must consult.' -- Pascalis Raimondos, Copenhagen Business School, Denmark
`This edited volume offers the reader a particularly useful addition to our understanding of the economics of foreign aid. The author list is impressive and includes scholars from all corners of the planet. Matters of theory are dealt with carefully and intelligently and the empirical analysis is first class. The volume has all the hallmarks of a lasting contribution.' -- Parviz Dabir-Alai, Richmond University, UK
`This Handbook provides a tremendously useful overview of the economics of foreign aid. It contains contributions by well-established and known scholars of foreign aid as well as by many fresh new voices, from both the developed and the developing world. It looks at both the determinants of aid, broadly conceived, and the manifold consequences of aid. It does so sometimes from a theoretical viewpoint, but mostly it is empirically oriented, aimed at providing us with better understanding. For anyone seeking to come up to speed with the state of the art in this important area of study, this Handbook is a first choice.' -- Eric Neumayer, London School of Economics and Political Science, UK
`This Handbook thoroughly examines the allocation of foreign aid, aid effectiveness, and aid policies with an impressive group of contributing scholars and experts in this field. In-depth theoretical and advanced empirical analysis of the pertinence of the economics of foreign aid and international relations makes the Handbook an excellent read.' -- Sahar Bahmani, University of Wisconsin, Parkside, US

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