Proliferation and fragmentation: Transactions costs and the value of aid


Acharya, A; de Lima, ATF; Moore, M; (2006) Proliferation and fragmentation: Transactions costs and the value of aid. The journal of development studies, 42 (1). pp. 1-21. ISSN 0022-0388 DOI: https://doi.org/10.1080/00220380500356225

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Abstract

The problem of the proliferation of the number of aid donors and aid channels continues to worsen. It is widely and plausibly believed that this significantly; reduces the value of aid by increasing direct and indirect transactions costs. We contribute to the existing literature by: (a) categorising the apparent adverse effects of proliferation; (b) producing a reliable and fair indicator of the relative degree to which the main bilateral donors proliferate or concentrate their aid; (c) giving some explanation of why some donors proliferate more than others; (d) constructing a reliable measure of the extent to to which recipients suffer from the problem of fragmentation in the sources of their aid; and (e) demonstrating that the worst proliferators among the aid donors are especially likely); to be suppliers of aid to recipients suffering most from fragmentation. There are significant implications for aid policy.

Item Type: Article
Faculty and Department: Faculty of Public Health and Policy > Dept of Global Health and Development
Web of Science ID: 235284600001
URI: http://researchonline.lshtm.ac.uk/id/eprint/10808

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