Template-type: ReDIF-Paper 1.0
Author-Name: Vandeninden, Frieda
Author-Email: Frieda.vandeninden@Maastrichtuniversity.nl
Author-Workplace-Name: UNU-MERIT, MGSoG, Maastricht University and Center of Research
	in Public Economics and Population Economics, Université de Liège
Title: Foreign aid transaction costs
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. 
Classification-JEL: O20, O22, D23
Keywords: aid modalities, aid effectiveness, transaction costs
Series: UNU-MERIT Working Papers
Creation-Date: 2012
Number: 007
File-URL: http://www.merit.unu.edu/publications/wppdf/2012/wp2012-007.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2012007