A New Approach to the Allocation of Aid Among Developing Countries: Is the USA Different from the Rest?
AbstractSummary This paper attempts to explain the factors that determine the geographical allocation of foreign aid. Its novelty is that it develops a rigorous theoretical model and conducts the corresponding empirical investigations based on a large panel dataset. We run regressions for different major donors (United States, Canada, France, Italy, Japan, United Kingdom, and multilateral organizations). with the explicit objective of establishing whether the United States, in light of its geopolitical hegemony, behaves differently from others. We find that all the donors respond to recipient need in their allocation of aid, but that the United States puts less emphasis on this than the other donors with the exception of Japan. We also find that the United States puts more emphasis on donor-recipient linkages than do the other donors suggesting that the United States attaches greater importance to issues of donor interest, for example, geopolitical, commercial, and other links with specific recipients.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 39 (2011)
Issue (Month): 8 (August)
Contact details of provider:
Web page: http://www.elsevier.com/locate/worlddev
aid allocation panel data USA donor;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chong, Alberto & Gradstein, Mark, 2008. "What determines foreign aid? The donors' perspective," Journal of Development Economics, Elsevier, vol. 87(1), pages 1-13, August.
- Sanjay G. Reddy & Camelia Minoiu, 2006.
"Development Aid and Economic Growth: A Positive Long-Run Relation,"
29, United Nations, Department of Economics and Social Affairs.
- Minoiu, Camelia & Reddy, Sanjay G., 2010. "Development aid and economic growth: A positive long-run relation," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(1), pages 27-39, February.
- Sanjay Reddy & Camelia Minoiu, 2009. "Development Aid and Economic Growth: A Positive Long-Run Relation," IMF Working Papers 09/118, International Monetary Fund.
- Subhayu Bandyopadhyay & Howard J. Wall, 2007.
"The determinants of aid in the post-cold war era,"
Federal Reserve Bank of St. Louis, issue Nov, pages 533-548.
- Subhayu Bandyopadhyay, 2006. "The Determinants of Aid in the Post-Cold War Era," Working Papers 06-14 Classification- JEL, Department of Economics, West Virginia University.
- Subhayu Bandyopadhyay & Howard J. Wall, 2006. "The determinants of aid in the post-cold war era," Working Papers 2006-021, Federal Reserve Bank of St. Louis.
- Matteo Bobba & Andrew Powell, 2007. "Aid and Growth: Politics Matters," Research Department Publications 4511, Inter-American Development Bank, Research Department.
- Maizels, Alfred & Nissanke, Machiko K., 1984. "Motivations for aid to developing countries," World Development, Elsevier, vol. 12(9), pages 879-900, September.
- Isenman, Paul, 1976. "Biases in aid allocations against poorer and larger countries," World Development, Elsevier, vol. 4(8), pages 631-641, August.
- McGillivray, Mark, 2003. "Modelling Aid Allocation: Issues, Approaches and Results," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Robert J Barro & Jong-Wha Lee, 2003.
"IMF Programs: Who Is Chosen and What Are the Effects?,"
Departmental Working Papers
2003-09, The Australian National University, Arndt-Corden Department of Economics.
- Barro, Robert J. & Lee, Jong-Wha, 2005. "IMF programs: Who is chosen and what are the effects?," Journal of Monetary Economics, Elsevier, vol. 52(7), pages 1245-1269, October.
- Robert J. Barro & Jong-Wha Lee, 2002. "IMF Programs: Who is Chosen and What Are the Effects?," NBER Working Papers 8951, National Bureau of Economic Research, Inc.
- McGillivray, M. & White, H., 1993. "Explanatory studies of aid allocation among developing countries : a critical survey," ISS Working Papers - General Series 1765018942, International Institute of Social Studies of Erasmus University (ISS), The Hague.
- Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2004.
"On The Empirics of Foreign Aid and Growth,"
Royal Economic Society, vol. 114(496), pages F191-F216, 06.
- Peter Hjertholm & Howard White, 2000. "Survey of Foreign Aid: History, Trends and Allocation," Discussion Papers 00-04, University of Copenhagen. Department of Economics.
- Rodrik, Dani, 1995.
"Why is there Multilateral Lending?,"
CEPR Discussion Papers
1207, C.E.P.R. Discussion Papers.
- Collier, Paul & Dollar, David, 2002.
"Aid allocation and poverty reduction,"
European Economic Review,
Elsevier, vol. 46(8), pages 1475-1500, September.
- Mosley, Paul & Hudson, John & Horrell, Sara, 1987. "Aid, the Public Sector and the Market in Less Developed Countries," Economic Journal, Royal Economic Society, vol. 97(387), pages 616-41, September.
- Dowling, J. M. & Hiemenz, Ulrich, 1985. "Biases in the allocation of foreign aid: Some new evidence," World Development, Elsevier, vol. 13(4), pages 535-541, April.
- Simon Feeny & Mark McGillivray, 2008. "What Determines Bilateral Aid Allocations? Evidence From Time Series Data," Review of Development Economics, Wiley Blackwell, vol. 12(3), pages 515-529, 08.
- Hummels, D. & Levinsohn, J., 1993.
"Monopolistic Competition and International Trade: Reconsidering the Evidence,"
339, Research Seminar in International Economics, University of Michigan.
- Hummels, David & Levinsohn, James, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 799-836, August.
- David Hummels & James Levinsohn, 1993. "Monopolistic Competition and International Trade: Reconsidering the Evidence," NBER Working Papers 4389, National Bureau of Economic Research, Inc.
- Burnside, Craig & Dollar, David, 1997.
"Aid, policies, and growth,"
Policy Research Working Paper Series
1777, The World Bank.
- McGillivray, Mark & Oczkowski, Edward, 1991. "Modelling the Allocation of Australian Bilateral Aid: A Two-Part Sample Selection Approach," The Economic Record, The Economic Society of Australia, vol. 67(197), pages 147-52, June.
- Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, vol. 64(2), pages 547-570, April.
- Dudley, Leonard & Montmarquette, Claude, 1976. "A Model of the Supply of Bilateral Foreign Aid," American Economic Review, American Economic Association, vol. 66(1), pages 132-42, March.
- Trumbull, William N & Wall, Howard J, 1994. "Estimating Aid-Allocation Criteria with Panel Data," Economic Journal, Royal Economic Society, vol. 104(425), pages 876-82, July.
- B. Mak Arvin & Torben Drewes, 2001. "Are there biases in German bilateral aid allocations," Applied Economics Letters, Taylor and Francis Journals, vol. 8(3), pages 173-177.
- Berthelemy, Jean-Claude & Tichit, Ariane, 2002.
"Bilateral Donors' Aid Allocation Decisions: A Three-dimensional Panel Analysis,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Berthelemy, Jean-Claude & Tichit, Ariane, 2004. "Bilateral donors' aid allocation decisions--a three-dimensional panel analysis," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 253-274.
- Dollar, David & Levin, Victoria, 2006. "The Increasing Selectivity of Foreign Aid, 1984-2003," World Development, Elsevier, vol. 34(12), pages 2034-2046, December.
- Frey, Bruno S. & Schneider, Friedrich, 1986. "Competing models of international lending activity," Journal of Development Economics, Elsevier, vol. 20(2), pages 225-245, March.
- Gulhati, Ravi & Nallari, Raj, 1988. "Reform of foreign aid policies: The issue of inter-country allocation in Africa," World Development, Elsevier, vol. 16(10), pages 1167-1184, October.
- Bowles, Paul, 1987. "Foreign aid and domestic savings in less developed countries: Some tests for causality," World Development, Elsevier, vol. 15(6), pages 789-796, June.
- Harrigan, Jane & Wang, Chengang & El-Said, Hamed, 2006.
"The economic and political determinants of IMF and world bank lending in the Middle East and North Africa,"
Elsevier, vol. 34(2), pages 247-270, February.
- J Harrigan & C Wang & H El-Said, 2004. "The Economic and Politics Determinants of IMF and World Bank Lending in the Middle East and North Africa," The School of Economics Discussion Paper Series 0411, Economics, The University of Manchester.
- Chimhowu, Admos, 2013. "Aid for agriculture and rural development: A changing landscape with new players and challenges," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Kumar, Ronald/R, 2011. "Role of Trade, Aid, Remittances and Financial Development in Pakistan," MPRA Paper 38871, University Library of Munich, Germany.
- Harrigan, Jane, 2011. "The Political Economy of Aid Flows to North Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
If references are entirely missing, you can add them using this form.