Grants to needy countries? A study of aid composition between 1975 and 2005

Pernilla Johansson ()
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Pernilla Johansson: Ministry of Finance, Postal: Ministry of Finance , Drottninggatan 21, SE-10333 Stockholm, Sweden

No 2009:19, Working Papers from Lund University, Department of Economics

Abstract: This paper studies whether the poorest and most indebted countries receive aid in the form of grants rather than loans. By studying bilateral aid flows to low- and middle-income countries between 1975 and 2005, the paper provides evidence on the determinants of the grant component of aid flows. While the empirical analysis finds no evidence that more indebted countries receive a higher grant component, it shows that poorer countries receive a significantly higher grant component of aid, although the size of the effect is rather limited.

Keywords: Aid composition; Aid allocation; Indebtedness; Poverty (search for similar items in EconPapers)
JEL-codes: F34 F35 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2009-12-17
New Economics Papers: this item is included in nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lunewp:2009_019

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