Handbook on the Economics of Foreign Aid

It would be fair to say that foreign aid today is one of the most important factors in international relations and in the national economy of many countries – as well as one of the most researched fields in economics.

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'Today's questions regarding foreign aid centre around aid allocation dynamics, the impact on trade and growth for receivers as well as donors, and, quite frequently, on aid effectiveness. The inter-relationship between aid and politics are also topics of high interest. These are precisely the issues that the Handbook edited by B. Mak Arvin and Byron Lew deals with. In more than 30 contributions, some highly renowned development scholars use the theoretical state of the art combined with empirically based econometric approaches to analyse various issues in the foreign aid field. It is a great pleasure for science-oriented readers to find a wealth of findings derived from hard data and rigorous analytical methods. The book is an excellent contribution to the current foreign aid discussion.'
- Siegfried Schönherr, Ifo Institute for Economic Research, Germany

'A title like Handbook on the Economics of Foreign Aid is ambitious; it promises coverage of literature that spans from theory to empirics, from macro to micro levels of analysis, from positive to normative economics. This Handbook fulfills this ambition 100 percent. It will be the single place that people will go to get a state-of-the-art survey of a particular issue. Some chapters are written by established experts in the area, others by newcomers that bring a fresh view on the issues involved. All in all, a book that future researchers in foreign aid must consult.'
- Pascalis Raimondos, Copenhagen Business School, Denmark

It would be fair to say that foreign aid today is one of the most important factors in international relations and in the national economy of many countries - as well as one of the most researched fields in economics. Although much has been written on the subject of foreign aid, this book contributes by taking stock of knowledge in the field, with chapters summarizing long-standing debates as well as the latest advances.

Several contributions provide new analytical insights or empirical evidence on different aspects of aid, including how aid may be linked to trade and the motives for aid giving. As a whole, the book demonstrates how researchers have dealt with increasingly complex issues over time - both theoretical and empirical - on the allocation, impact, and efficacy of aid, with aid policies placed at the center of the discussion.

In addition to students, academics, researchers, and policymakers involved in development economics and foreign aid, this Handbook will appeal to all those interested in development issues and international policies.

Contributors: E. Aguayo, E. Alvi, B.M. Arvin, S.A. Asongu, E. Bland, C. Boussalis, J. Brambila-Macias, S. Brown, R. Calleja, L. Chauvet, A. Das, H. Doucouliagos, V.Z. Eichenauer, G.S. Epstein, P. Exposito, S. Feeny, D. Fielding, I.N. Gang, F. Gibson, R. Gounder, P. Guillaumont, M.-C. Guisan, N. Hermes, P. Hühne, A.L. Islam, A. Isopi, S. Kablan, C. Kilby, A. Kumar, S. Lahiri, R. Lensink, B. Lew, I. Martinez-Zarzoso, I. Massa, G. Mavrotas, M. McGillivray, B. Meyer, K. Michaelowa, O. Morrissey, D. Mukherjee, P. Nunnenkamp, M. Paldam, C. Peiffer, R. Pradhan, M.G. Quibria, B. Reinsberg, D. Rowlands, M. Salois, J. Serieux, D. Sogge, S. Torrance, S. Tezanos Vázquez, L. Wagner