Foreign Aid Allocation: A Neural Network Approach
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by
Sevinc Rende
1970 Volume 34, p33-56
Abstract
During the last twenty years, there have been strong supporters of foreignaid, and equally strong critiques. The debate is based on an effort to establish acausal relationship between foreign aid and economic growth, and it is still ongoing.Rather than seeking to uncover the causal relationships, I examine foreign aid andits relation to structural indicators in aid dependent countries using a special typeof artificial neural networks, known as Kohonen maps. The findings suggest thataid allocation and coordination could be based on institutional and climate-basedsimilarities across recipient countries rather than the geographical proximity or thecultural ties, or preferences, between the donor and recipient countries.
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Date 1970-01-01
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