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Grants to Needy Countries? A Study of Aid Composition between 1975 and 2005
Author(s) -
Johansson Pernilla
Publication year - 2011
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/j.1467-7679.2011.00531.x
Subject(s) - developing country , economics , component (thermodynamics) , empirical evidence , composition (language) , demographic economics , development economics , international economics , business , economic growth , philosophy , linguistics , physics , epistemology , thermodynamics
This article discusses whether the poorest and most indebted countries receive aid in the form of grants rather than loans, by studying bilateral aid flows to low‐ and middle‐income countries between 1975 and 2005. The empirical analysis finds no evidence that more indebted countries receive a higher grant component, but it does show that poorer countries receive a significantly higher grant component, although the size of the effect is quite limited.