Includes bibliographical references and index.

Contents:1. IntroductionB. Mak Arvin and Byron LewPART I AID FLOWS AND THE ALLOCATION OF AID 2. Performance Based Allocation (PBA) of Foreign Aid: Still Alive?Patrick Guillaumont and Laurent Wagner 3. Aid and Reverse Flows: A Global AnalysisAnupam Das and John Serieux4. Determining Aid Allocation Decision-Making: Towards a Comparative Sectored Approach Caryn Peiffer and Constantine Boussalis5. Samaritan's Dilemma, Time-Inconsistency and Foreign Aid: A Review of the Theoretical ModelsAlok Kumar6. MDGs and International Cooperation: An Analysis of Private and Public Aid and the Role of EducationMaria-Carmen Guisan, Eva Aguayo, and Pilar Exposito7. Geographical Allocation of Aid: Lessons from Political Economy Sergio Tezanos Vazquez8. China's Aid and FDI Flows to Africa: Strategic Interest or Economic Motivation? Byron Lew and B. Mak ArvinPART II AID AND TRADE 9. Inter-Linkages of Foreign Aid and Trade Policy in Trade-Theoretic FrameworksSajal Lahiri10. Aid for Trade: Assessing the Effects on Recipient Exports of Manufactures and Primary Commodities to Donors and Non-DonorsPhilipp Huhne, Birgit Meyer and Peter Nunnenkamp11. Aid for Trade: The Case of Asia and Oceania Nations Rukmani Gounder12. The Trade Effects of Foreign Aid - An Empirical PerspectiveInmaculada Martinez-Zarzoso13. Foreign Aid, International Trade, and Financial Crises: A Developing Country Perspective Jose Brambila-Macias, Isabella Massa, and Matthew SaloisPART III IMPACT OF AID14. The Macroeconomic Impact of Aid in Recipient Countries: Old Wine in New Bottles?George Mavrotas15. Foreign Aid, Economic Growth, FDI, and Trade Openness in Lower Middle-Income Countries: A Dynamic Panel Data Analysis Rudra Pradhan and B. Mak Arvin16. Informal Influence on Multilateral Lending: The Case of the Inter-American Development BankElizabeth Bland and Christopher Kilby 17. Donors Helping ThemselvesDavid Sogge18. Aid and Corruption: an Incentive ProblemAlessia Isopi19. The Evolving Debate of the Effect of Foreign Aid on Corruption and Institutions in AfricaSimplice A. AsonguPART IV AID EFFECTIVENESS20. Finally a Breakthrough? The Recent Rise in the Size of the Estimates of Aid EffectivenessHristos Doucouliagos and Martin Paldam21. On the Heterogeneous Impact of Aid on Growth: A Review of the EvidenceLisa Chauvet22. Aid, Growth, Policies, and Fragility Mark McGillivray and Simon Feeny23. Does Real Exchange Rate Appreciation Undermine Aid Effectiveness? Evidence from Sub-Saharan AfricaDavid Fielding and Fred Gibson24. The Effects of Education Aid on Primary Schooling in Developing CountriesEskander Alvi and Debasri Mukherjee25. A Case Study of Aid Effectiveness in Bangladesh: Development with Governance ChallengesM.G. Quibria and Anika L. Islam26. Foreign Aid to Foster Greener Cities: What Do We Know? Sandrine KablanPART V AID POLICIES27. Foreign Aid and Policy Coherence for DevelopmentStephen Brown28. Making Aid Work: Governance and DecentralizationGil S. Epstein and Ira N. Gang29. Donor Competition for Influence in Recipient CountriesRachael Calleja and Dane Rowlands 30. The Rise of Multi-Bi Aid and the Proliferation of Trust FundsBernhard Reinsberg, Katharina Michaelowa, and Vera Z. Eichenauer31. Aid and Taxation Oliver Morrissey and Samantha Torrance 32. Aid and Microfinance Niels Hermes and Robert Lensink Index

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.