Need, merit or self-interest – what determines the allocation of aid?
Previous studies into aid allocation have concluded that foreign aid is allocated not only according to development needs but also according to donor self-interest. We revisit this topic and allow for donor as well as recipient specific effects in our analysis. Our results indicate that roughly half...
| Hlavní autoři: | , |
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| Médium: | Working paper |
| Jazyk: | English |
| Vydáno: |
CSAE (University of Oxford)
2008
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| _version_ | 1826265324441305088 |
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| author | Hoeffler, A Outram, V |
| author_facet | Hoeffler, A Outram, V |
| author_sort | Hoeffler, A |
| collection | OXFORD |
| description | Previous studies into aid allocation have concluded that foreign aid is allocated not only according to development needs but also according to donor self-interest. We revisit this topic and allow for donor as well as recipient specific effects in our analysis. Our results indicate that roughly half of the predicted value of aid is determined by donor specific effects. Of the remaining variation, recipient need accounts for 36 percent and donor self-interest for about 16 percent. This suggests that the previous literature has overstated the importance of donor self-interest. However, bilateral donors seem to place little importance on recipient merit. Recipient merit, measured by growth, democracy and human rights, accounts for only two percent of predicted aid. |
| first_indexed | 2024-03-06T20:21:54Z |
| format | Working paper |
| id | oxford-uuid:2e167ed3-df44-4fd1-81e5-ab6998bbe7e4 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T20:21:54Z |
| publishDate | 2008 |
| publisher | CSAE (University of Oxford) |
| record_format | dspace |
| spelling | oxford-uuid:2e167ed3-df44-4fd1-81e5-ab6998bbe7e42022-03-26T12:46:53ZNeed, merit or self-interest – what determines the allocation of aid?Working paperhttp://purl.org/coar/resource_type/c_8042uuid:2e167ed3-df44-4fd1-81e5-ab6998bbe7e4EnglishDepartment of Economics - ePrintsCSAE (University of Oxford)2008Hoeffler, AOutram, VPrevious studies into aid allocation have concluded that foreign aid is allocated not only according to development needs but also according to donor self-interest. We revisit this topic and allow for donor as well as recipient specific effects in our analysis. Our results indicate that roughly half of the predicted value of aid is determined by donor specific effects. Of the remaining variation, recipient need accounts for 36 percent and donor self-interest for about 16 percent. This suggests that the previous literature has overstated the importance of donor self-interest. However, bilateral donors seem to place little importance on recipient merit. Recipient merit, measured by growth, democracy and human rights, accounts for only two percent of predicted aid. |
| spellingShingle | Hoeffler, A Outram, V Need, merit or self-interest – what determines the allocation of aid? |
| title | Need, merit or self-interest – what determines the allocation of aid? |
| title_full | Need, merit or self-interest – what determines the allocation of aid? |
| title_fullStr | Need, merit or self-interest – what determines the allocation of aid? |
| title_full_unstemmed | Need, merit or self-interest – what determines the allocation of aid? |
| title_short | Need, merit or self-interest – what determines the allocation of aid? |
| title_sort | need merit or self interest what determines the allocation of aid |
| work_keys_str_mv | AT hoefflera needmeritorselfinterestwhatdeterminestheallocationofaid AT outramv needmeritorselfinterestwhatdeterminestheallocationofaid |