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Sanjay Reddy and Ms. Camelia Minoiu

-promoting aid expenditures—the ideal proxy for DA . For example, sector-level aid disbursement data (e.g., aid spent on social infrastructure and services, health and education, employment, and housing and social services) are unavailable for the period considered (1960–2000). 10 We employ a second-best solution based on the assumption that DA is likely undergirded by the developmental motive. Accordingly, we draw on the findings of the aid allocation literature and use established aid-quality donor rankings to identify development-friendly donor countries. DA measures