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What determines foreign aid? The donors' perspective

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Author Info
Chong, Alberto
Gradstein, Mark

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Abstract

This paper examines the factors affecting the support for foreign aid among voters in donor countries. A simple theoretical model, which considers an endogenous determination of official and private aid flows, relates individual income to aid support and also suggests that government efficiency is an important factor in this regard. The empirical analysis of individual attitudes, based on the World Values Surveys, reveals that satisfaction with own government performance and individual relative income are positively related to the willingness to provide foreign aid. Furthermore, using actual donor country data we find that aid is adversely affected by own government inefficiency.

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File URL: http://www.sciencedirect.com/science/article/B6VBV-4PGY4YT-2/1/91ff5920785f8a3dbc6f14e5c5d863a2
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Publisher Info
Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 87 (2008)
Issue (Month): 1 (August)
Pages: 1-13
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Handle: RePEc:eee:deveco:v:87:y:2008:i:1:p:1-13

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  1. Ronald U. Mendoza & Ryan Jones & Gabriel Vergara, 2009. "Will the global financial crisis lead to lower foreign aid? A first look at United States ODA," Fordham Economics Discussion Paper Series dp2009-01, Fordham University, Department of Economics. [Downloadable!]
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This page was last updated on 2009-12-3.


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