Foreign Aid and Business Bottlenecks : A Study of Aid Effectiveness
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This paper proposes a new framework to
analyze aid effectiveness. Using World Bank firm survey data
and OECD aid flow data, the authors analyze whether aid
targets areas that firms in developing countries have
identified as obstacles for their growth and whether aid
actually improves firms' perceptions of those areas.
The analysis finds that aid does target the areas that firms
have identified as obstacles; aid funding trade related
projects is particularly effective in targeting the correct
countries. For the most part, aid has a positive impact on
improving firms' perceptions, particularly in the
business environment. And for each target area, smaller aid
disbursements tend to be more effective at improving firm
perceptions than larger disbursements.
Palabras clave
AID, AID FLOWS, AID TARGETS, COMMUNITIES, DECISION MAKING, DEVELOPMENT AID, DEVELOPMENT ASSISTANCE, DEVELOPMENT IMPACT, DEVELOPMENT ISSUES, DEVELOPMENT POLICY, DEVELOPMENT RESEARCH, DIMINISHING RETURNS, ECONOMIC GROWTH, EXPORTS, FOOD AID, HUMANITARIAN AID, HUMANITARIAN EMERGENCIES, INFLATION, LABOR FORCE, LABOR MARKETS, LABOR REGULATIONS, NUTRITION, POLICY MAKERS, POLITICAL ECONOMY, PRIORITIES, TARGETING, TAX RATES, TECHNICAL ASSISTANCE, TECHNOLOGICAL CHANGE, TRADEOFFS, TRANSPORTATION, Microdata Set