'Today's questions regarding foreign aid centre around aid allocation dynamics, the impact on trade and growth for receivers as well as donors, and, quite frequently, on aid effectiveness. The inter-relationship between aid and politics are also topics of high interest. These are precisely the issues that the Handbook edited by B. Mak Arvin and Byron Lew deals with. In more than 30 contributions, some highly renowned development scholars use the theoretical state of the art combined with empirically based econometric approaches to analyse various issues in the foreign aid field. It is a great pleasure for science-oriented readers to find a wealth of findings derived from hard data and rigorous analytical methods. The book is an excellent contribution to the current foreign aid discussion.' - Siegfried Schoenherr, Ifo Institute for Economic Research, Germany 'A title like Handbook on the Economics of Foreign Aid is ambitious; it promises coverage of literature that spans from theory to empirics, from macro to micro levels of analysis, from positive to normative economics. This Handbook fulfills this ambition 100 percent. It will be the single place that people will go to get a state-of-the-art survey of a particular issue. Some chapters are written by established experts in the area, others by newcomers that bring a fresh view on the issues involved. All in all, a book that future researchers in foreign aid must consult.' - Pascalis Raimondos, Copenhagen Business School, Denmark It would be fair to say that foreign aid today is one of the most important factors in international relations and in the national economy of many countries - as well as one of the most researched fields in economics. Although much has been written on the subject of foreign aid, this book contributes by taking stock of knowledge in the field, with chapters summarizing long-standing debates as well as the latest advances. Several contributions provide new analytical insights or empirical evidence on different aspects of aid, including how aid may be linked to trade and the motives for aid giving. As a whole, the book demonstrates how researchers have dealt with increasingly complex issues over time - both theoretical and empirical - on the allocation, impact, and efficacy of aid, with aid policies placed at the center of the discussion. In addition to students, academics, researchers, and policymakers involved in development economics and foreign aid, this Handbook will appeal to all those interested in development issues and international policies. Contributors: E. Aguayo, E. Alvi, B.M. Arvin, S.A. Asongu, E. Bland, C. Boussalis, J. Brambila-Macias, S. Brown, R. Calleja, L. Chauvet, A. Das, H. Doucouliagos, V.Z. Eichenauer, G.S. Epstein, P. Exposito, S. Feeny, D. Fielding, I.N. Gang, F. Gibson, R. Gounder, P. Guillaumont, M.-C. Guisan, N. Hermes, P. Huhne, A.L. Islam, A. Isopi, S. Kablan, C. Kilby, A. Kumar, S. Lahiri, R. Lensink, B. Lew, I. Martinez-Zarzoso, I. Massa, G. Mavrotas, M. McGillivray, B. Meyer, K. Michaelowa, O. Morrissey, D. Mukherjee, P. Nunnenkamp, M. Paldam, C. Peiffer, R. Pradhan, M.G. Quibria, B. Reinsberg, D. Rowlands, M. Salois, J. Serieux, D. Sogge, S. Torrance, S. Tezanos Vazquez, L. Wagner

'Today's questions regarding foreign aid centre around aid allocation dynamics, the impact on trade and growth for receivers as well as donors, and, quite frequently, on aid effectiveness. The inter-relationship between aid and politics are also topics of high interest. These are precisely the issues that the Handbook edited by B. Mak Arvin and Byron Lew deals with. In more than 30 contributions, some highly renowned development scholars use the theoretical state of the art combined with empirically based econometric approaches to analyse various issues in the foreign aid field. It is a great pleasure for science-oriented readers to find a wealth of findings derived from hard data and rigorous analytical methods. The book is an excellent contribution to the current foreign aid discussion.' - Siegfried Schoenherr, Ifo Institute for Economic Research, Germany 'A title like Handbook on the Economics of Foreign Aid is ambitious; it promises coverage of literature that spans from theory to empirics, from macro to micro levels of analysis, from positive to normative economics. This Handbook fulfills this ambition 100 percent. It will be the single place that people will go to get a state-of-the-art survey of a particular issue. Some chapters are written by established experts in the area, others by newcomers that bring a fresh view on the issues involved. All in all, a book that future researchers in foreign aid must consult.' - Pascalis Raimondos, Copenhagen Business School, Denmark It would be fair to say that foreign aid today is one of the most important factors in international relations and in the national economy of many countries - as well as one of the most researched fields in economics. Although much has been written on the subject of foreign aid, this book contributes by taking stock of knowledge in the field, with chapters summarizing long-standing debates as well as the latest advances. Several contributions provide new analytical insights or empirical evidence on different aspects of aid, including how aid may be linked to trade and the motives for aid giving. As a whole, the book demonstrates how researchers have dealt with increasingly complex issues over time - both theoretical and empirical - on the allocation, impact, and efficacy of aid, with aid policies placed at the center of the discussion. In addition to students, academics, researchers, and policymakers involved in development economics and foreign aid, this Handbook will appeal to all those interested in development issues and international policies. Contributors: E. Aguayo, E. Alvi, B.M. Arvin, S.A. Asongu, E. Bland, C. Boussalis, J. Brambila-Macias, S. Brown, R. Calleja, L. Chauvet, A. Das, H. Doucouliagos, V.Z. Eichenauer, G.S. Epstein, P. Exposito, S. Feeny, D. Fielding, I.N. Gang, F. Gibson, R. Gounder, P. Guillaumont, M.-C. Guisan, N. Hermes, P. Huhne, A.L. Islam, A. Isopi, S. Kablan, C. Kilby, A. Kumar, S. Lahiri, R. Lensink, B. Lew, I. Martinez-Zarzoso, I. Massa, G. Mavrotas, M. McGillivray, B. Meyer, K. Michaelowa, O. Morrissey, D. Mukherjee, P. Nunnenkamp, M. Paldam, C. Peiffer, R. Pradhan, M.G. Quibria, B. Reinsberg, D. Rowlands, M. Salois, J. Serieux, D. Sogge, S. Torrance, S. Tezanos Vazquez, L. Wagner

The success or failure of economic assistance programs is a shared responsibility of recipient countries and donors. The negative attitude about aid prevalent today underscores a perception the aid has failed. Critics often blame corrupt regimes, weak governments, or poor economic policies. However, the poor track record of aid is also due to donors' inability to allocate limited funds effectively and poor coordination of their aid efforts. Declining aid budgets have led to fundamental questioning of foreign aid's allocation and utility, while the apparent ineffectiveness of aid has shrunk aid budgets and turned public opinion against providing it. This edited collection containing pieces written by leading development specialists evaluates these emerging questions of allocation and efficiency. Development economists, policy makers, and development specialists will benefit from reading this work.

Chapters examine the optimal and intertemporal allocation of aid, the role and accountability of NGOs in allocation, the importance of untying (a new perspective on low levels of aid), and links between the allocation pattern of donors. Additional chapters deal with the impact of aid on economic growth, democracy, wage inequality between skilled and unskilled labor, and the role of governance and institutional capacity in aid effectiveness. An effective balance between theoretical and empirical models is offered to better illustrate the issues involved.