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What Determines Bilateral Aid Allocations? Evidence From Time Series Data

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Author Info

  • Simon Feeny
  • Mark McGillivray

Abstract

This paper models the allocation of bilateral foreign development aid to developing countries. A simple theoretical framework is developed, in which aid is treated as a private good of a donor country bureaucratic group responsible for bilateral aid allocation. This model is applied to time series data for ten principal recipients of bilateral official development assistance. Features of this application are that it caters for the joint determination of aid allocations and for donor allocation behavior to differ among individual recipient countries. Results indicate that both recipient need and donor interest variables determine the amount of foreign aid to developing countries, and that donor allocation behavior often differs markedly among recipients. Copyright � 2008 The Authors. Journal compilation � 2008 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 12 (2008)
Issue (Month): 3 (08)
Pages: 515-529

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Handle: RePEc:bla:rdevec:v:12:y:2008:i:3:p:515-529

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

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Citations

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Cited by:
  1. Katharina Stepping, 2012. "Do poor health conditions lead to higher allocation of development assistance?," MAGKS Papers on Economics 201230, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  2. Tapas Mishra & Bazoumana Ouattara & Mamata Parhi, 2012. "International Development Aid Allocation Determinants," Economics Bulletin, AccessEcon, vol. 32(2), pages 1385-1403.
  3. Katharina Stepping, 2012. "The determinants of selection and allocation decisions for health assistance. Which role do health indicators play?," MAGKS Papers on Economics 201231, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  4. Axel Dreher & Peter Nunnenkamp & Maya Schmaljohann, 2013. "The Allocation of German Aid: Self-interest and Government Ideology," Kiel Working Papers 1817, Kiel Institute for the World Economy.
  5. Pettersson, Jan & Johansson, Lars M, 2009. "Tied Aid, Trade-Facilitating Aid or Trade-Diverting Aid?," Working Paper Series 2009:5, Uppsala University, Department of Economics.
  6. Kilolo, Jean-Marc Malambwe, 2013. "Country size, trade liberalization and transfers," MPRA Paper 47996, University Library of Munich, Germany.
  7. Carro, Martha & Larrú, José María, 2010. "Flowing Together or Flowing Apart: An Analysis of the Relation between FDI and ODA Flows to Argentina and Brazil," MPRA Paper 25064, University Library of Munich, Germany.
  8. Anke Hoeffler & Verity Outram, 2008. "Need, Merit or Self-Interest - What Determines the Allocation of Aid?," Economics Series Working Papers CSAE WPS/2008-19, University of Oxford, Department of Economics.
  9. Harrigan, Jane & Wang, Chengang, 2011. "A New Approach to the Allocation of Aid Among Developing Countries: Is the USA Different from the Rest?," World Development, Elsevier, vol. 39(8), pages 1281-1293, August.

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