Bilateral Aid Allocation for International Development: Impact of the Financial Crisis
https://doi.org/10.38050/01300105201846
Abstract
This article examines the impact of financial crisis of 2008-2009 on allocation of development aid. Using OECD data on Official Development Assistance (ODA) allocation for international development by key donor countries, authors test three hypotheses: first, general impact of crisis on ODA allocation; second, impact of crisis on three recipient income groups; third, impact of crisis on relative importance of analyzed factors for ODA allocation decisions. The results show that general impact of crisis on ODA volumes was negative, although donors preferred to increase aid to low-income countries. Impact of factors describing economic situation in donor countries (public debt level, government expenditures and donor growth) increased after crisis. Donor countries might make use of these results to increase efficiency of their development assistance strategies, whereas recipient countries may exploit these results in order to attract more external financing for development.
About the Authors
E. B. Balter
Moscow state University named after M. V. Lomonosov;
Russian Federation
Russian Federation
A. K. Morozkina
National Research University Higher school of Economics; Financial Research Institute
Russian Federation
Russian Federation
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Review
For citations:
Balter E.B., Morozkina A.K. Bilateral Aid Allocation for International Development: Impact of the Financial Crisis. Moscow University Economics Bulletin. 2018;(4):100-121. (In Russ.) https://doi.org/10.38050/01300105201846
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