Graduation Semester and Year

2005

Language

English

Document Type

Thesis

Degree Name

Master of Arts in Economics

Department

Economics

First Advisor

Michael Ward

Abstract

Foreign aid is an important component of financial flows to many developing countries. This study seeks to investigate how foreign aid flows are influenced by two factors: the gross domestic products (GDP) per capita of the recipient countries, and changes in institutional and economic factors. For example, do increases in the GDP per capita of recipient countries attract more foreign aid in support of the on going economic and institutional reforms, or does this send a signal to the donors that these countries are doing well, and do not need as much aid? The question is whether aid donors reward reforms in recipient countries with increased foreign aid. This study finds that the recipients' GDP per capita have no significant influence on aid flows, and that institutional and economic reforms do not attract more aid. In fact, institutional and economic reforms lead to decreases in foreign aid to recipient countries.

Disciplines

Economics | Social and Behavioral Sciences

Comments

Degree granted by The University of Texas at Arlington

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