Budget Support versus Project Aid

WPIEA0882003 Image
Price:  $15.00

Author/Editor: Tito Cordella, Giovanni Dell'Ariccia
Release Date: © April, 2003
ISBN : 978-1-45185-118-2
Stock #: WPIEA0882003
Stock Status: On back-order

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Should donors who are interested in the effectiveness of developmental programs rely on conditional budget support or on project aid? To answer this question, we present a model in which only a subset of the developmental expenditures can be subject to conditionality. We show that budget support is preferable to project aid when donors and recipients' preferences are aligned, and when assistance is small relative to recipients' resources. Then, we test our model estimating a modified growth model for a panel of developing countries, and find evidence in support of our predictions.


Development assistance , Economic development

More publications in this series: Working Papers

More publications by: Tito Cordella ; Giovanni Dell'Ariccia