TY - JOUR
T1 - Aid volatility, policy and development
AU - Hudson, John
AU - Mosley, Paul
PY - 2008/10
Y1 - 2008/10
N2 - We build on Bulir and Hamann's analysis of aid volatility [Bulir, A., & Hamann, J. (2003). Aid volatility: An empirical assessment. IMF Staff Papers, 50(1) 64-89: Bulir, A.. & Hamann, J. (2008) Volatility of development aid: From the frying pan into the fire? Washington DC: IMF, paper submitted to this Special Section], showing that the conclusions reached depend on the dataset used. Their argument that the poorest Countries have the highest volatility appears not to be correct. The impact of volatility on growth is negative overall, but differs between positive and negative volatility. The mix between "responsive" components of aid, for example, programme aid, and "proactive" components. for example, technical assistance, is important. Finally, we conclude that measures which increase trust between donor and recipient, and reductions in the degree of donor "oligopoly." reduce aid volatility without obviously reducing its effectiveness.
AB - We build on Bulir and Hamann's analysis of aid volatility [Bulir, A., & Hamann, J. (2003). Aid volatility: An empirical assessment. IMF Staff Papers, 50(1) 64-89: Bulir, A.. & Hamann, J. (2008) Volatility of development aid: From the frying pan into the fire? Washington DC: IMF, paper submitted to this Special Section], showing that the conclusions reached depend on the dataset used. Their argument that the poorest Countries have the highest volatility appears not to be correct. The impact of volatility on growth is negative overall, but differs between positive and negative volatility. The mix between "responsive" components of aid, for example, programme aid, and "proactive" components. for example, technical assistance, is important. Finally, we conclude that measures which increase trust between donor and recipient, and reductions in the degree of donor "oligopoly." reduce aid volatility without obviously reducing its effectiveness.
KW - upside and downside volatility
KW - trust
KW - aid volatility
KW - disasters
UR - http://www.scopus.com/inward/record.url?scp=53749089380&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1016/j.worlddev.2007.02.018
U2 - 10.1016/j.worlddev.2007.02.018
DO - 10.1016/j.worlddev.2007.02.018
M3 - Article
SN - 0305-750X
VL - 36
SP - 2082
EP - 2102
JO - World Development
JF - World Development
IS - 10
ER -
