Kiel Working Papers, Kiel Institute for World Economics
No 1748:
Donor Coordination and Specialization: Did the Paris Declaration Make a Difference?
Peter Nunnenkamp, Hannes Öhler and Rainer Thiele
Abstract: We assess whether bilateral and multilateral donors of
foreign aid specialized and coordinated their activities with other donors
as agreed in the Paris Declaration of 2005. We account for donor
heterogeneity, varying aid priorities and recipient characteristics in
order to isolate changes in donor behaviour over time. Recent shifts in aid
priorities, such as the rising importance of general budget support, have
reduced the fragmentation of aid. Nevertheless, our results reveal that aid
fragmentation persisted after the Paris Declaration and coordination among
donors has even weakened
Keywords: aid allocation, fragmentation, Theil index, donor coordination, overlaps, Paris Declaration; (follow links to similar papers)
JEL-Codes: F35; (follow links to similar papers)
21 pages, November 2011
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