Aid effectiveness from a donor and from a recipient perspective

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The central aim of this collaborative project is to further our understanding of the effectiveness of aid in promoting benefits to both donor and recipient countries, as well as help understand the determinants of these effects. The project intends to continue to contribute to the literature in this subject area by considering three different specific issues:(1) Aid and trade a. Examine the role of tied aid and aid predictability in affecting the impact of aid on exports of donor and recipient countries. b. Examine causality issues in the aid-trade link. c. Analyze transmission channels more closely. (2) Aid allocation and aid effectiveness a. Examine whether there is organizational leaming in the World Bank by investigating whether and to what extent the Bank reallocates or readjusts its projects. b. Assess specific questions related to the World Bank projects in India. c. Investigate the effect of financial dependence on the aid allocation by US NGOs. d. Examine the impact of aid granted to the health sector on health outcomes. (3) Aid fragmentation and donor coordination a. Examine aid dependence between donors. b. In-depth analysis of aid fragmentation and donor coordination. c. Examine whelher aid fragmentation and lack of donor coordination impairs the effectiveness of aid.