Ira Gang
Rutgers University
Department of Economics
E-mail: gang@economics.rutgers.edu

Item Number:  [J18]
Title: Ira N. Gang and Haider Ali Khan, Some Determinants of Foreign Aid to India, 1960-1985, World Development, 18 (1990) 431-442. Reprinted in H.W. Singer, Neelanbar Hatti and Rameshwar Tandon, Aid and External Financing in the 1990s (New Delhi: Indus Publishing, 1991)
Abstract: Using a unique data set of aid to India from all sources, 1960-85, we discuss the magnitude and composition of aid, and present a principal components analysis of aid giving. We then attempt to get at the underlying patterns and causes of aid giving using factor analytic techniques, and explain the level of foreign aid by employing a partial adjustment model. We find that latent motivations do classify the donor countries into four convenient groups - each with different political and economic motivations. We also find that the latent variables capturing the motivations of the United States, Western European countries, Eastern European countries, as well as last year’s aid and the balance of trade, but not GDP growth, are significant determinants of the level of aid.

Reference:  Some Determinants of Foreign Aid to India, 1960-1985 (with Haider Ali Khan), World Development, 18 (1990) 431-442. Reprinted in H.W. Singer, Neelanbar Hatti and Rameshwar Tandon, Aid and External Financing in the 1990s (New Delhi: Indus Publishing, 1991).

Co-Author Information:
Haider Ali Khan
Graduate School of International Studeis, University of Denver
E-Mail:  

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