Who gives aid to whom and when? Aid accelerations, shocks and policies
AbstractWe address the pitfalls of averaging by exploiting the longitudinal variation in aid to identify sudden and sharp increases in aid flows. Focusing on specific events, we test if aid accelerations correspond to policies and shocks in the recipient country. We find that positive regime changes and wars are significant predictors of aid accelerations. The results also suggest the presence of aid spill-overs, where neighbors of war-torn countries are almost as likely to experience large aid inflows. Disaggregating aid flows by donors, we find some indicative evidence for competing allocation rules among European donors. We argue that drivers of aid accelerations differ from drivers of average aid flows—a distinction that can help reconcile some of the ambiguous empirical results in the aid literature.
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Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Political Economy.
Volume (Year): 28 (2012)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/inca/505544
ODA; Growth acceleration; Policies;
Other versions of this item:
- Tilman Brück & Guo Xu, 2011. "Who Gives Aid to Whom and When?: Aid Accelerations, Shocks and Policies," Economics of Security Working Paper Series 49, DIW Berlin, German Institute for Economic Research.
- Tilman Brück & Guo Xu, 2011. "Who Gives Aid to Whom and When?: Aid Accelerations, Shocks and Policies," Discussion Papers of DIW Berlin 1133, DIW Berlin, German Institute for Economic Research.
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- F35 - International Economics - - International Finance - - - Foreign Aid
- F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
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