Foreign aid transaction costs

Vandeninden, Frieda (2012). Foreign aid transaction costs. UNU-MERIT.

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UNU-MERIT Working Papers

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  • Author Vandeninden, Frieda
    Title Foreign aid transaction costs
    Publication Date 2012
    Publisher UNU-MERIT
    Abstract The term 'transaction cost' has been widely mentioned in the recent literature on aid effectiveness. In fact, the shift into the aid delivery system (see e.g. the Paris Declaration on aid effectiveness) has been justified among others by the high transaction costs generated by the previous aid modalities. In this paper, we first want to understand what the notion of transaction costs means in the context of aid delivery and give a typology of the possible costs. We also develop an analytical framework to evaluate them. This framework appears to be a relevant tool to compare the effectiveness of aid modalities. We finally apply this analytical framework in Mali: we look at the evolution of the foreign aid transaction costs in two sectors (health and education) with the introduction of sector-wide programmes.
    Keyword Aid modalities
    Aid effectiveness
    Transaction costs
    JEL O20
    O22
    D23
    Copyright Holder UNU-MERIT
    Copyright Year 2012
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    Created: Wed, 11 Dec 2013, 17:05:27 JST