Budget support versus project aid: A theoretical appraisal

• 成果类型: Article
• 署名作者: Cordella, Tito; Dell'Ariccia, Giovanni
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2007.02082.x
• 发表日期: 2007
• 页码: 1260-1279
• 关键词: foreign-aid; CONDITIONALITY; fungibility; reduction; policies; military; GROWTH

摘要

Should donors interested in the effectiveness of developmental programmes rely on conditional budget support or on project aid? To answer this question, we present a model in which only a subset of developmental expenditures can be subject to conditionality. We show that budget support is preferable to project aid when the preferences of donors and recipients are aligned, and when assistance is small relative to the recipients' own resources. Furthermore, when donors cannot observe the recipient's type, they may impose higher levels of conditionality to separate committed governments from uncommitted ones.