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Determinants of Donor Generosity: A Survey of the Aid Budget Literature

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  • Fuchs, Andreas
  • Dreher, Axel
  • Nunnenkamp, Peter

Abstract

This article provides a survey of the aid budget literature and examines the determinants of the development aid efforts of 22 Development Assistance Committee (DAC) members over the 1976–2011 period. In fixed effects regressions, we identify aid inertia, per-capita GDP, the creation of an independent aid agency, colonial history, Russian military capacity, peer effects, terror incidents, aid to CEEC/NIS countries, and imports from developing countries as determinants of the Official Development Assistance (ODA)-to-GNI ratio. Excluding donor fixed effects, several variables, including colonial history and the aid agency dummy, are no longer significant; the impact of per-capita GDP gets weaker, while donors’ budget deficits decrease aid effort.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 56 (2014)
Issue (Month): C ()
Pages: 172-199

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Handle: RePEc:eee:wdevel:v:56:y:2014:i:c:p:172-199

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: foreign aid; Official Development Assistance; aid budget; Extreme Bounds Analysis;

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Citations

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Cited by:
  1. Fuchs, Andreas & Dreher, Axel & Nunnenkamp, Peter, 2014. "Determinants of Donor Generosity: A Survey of the Aid Budget Literature," World Development, Elsevier, Elsevier, vol. 56(C), pages 172-199.
  2. Brech, Viktor & Potrafke, Niklas, 2013. "Donor ideology and types of foreign aid," Munich Reprints in Economics, University of Munich, Department of Economics 20229, University of Munich, Department of Economics.
  3. Axel Dreher & Anna Minasyan & Peter Nunnenkamp, 2013. "Government Ideology in Donor and Recipient Countries: Does Political Proximity Matter for the Effectiveness of Aid?," Kiel Working Papers 1870, Kiel Institute for the World Economy.
  4. Andrea Filippo Presbitero, 2013. "Aid and Vulnerability," Mo.Fi.R. Working Papers, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences 88, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  5. Kleemann, Linda & Nunnenkamp, Peter & Thiele, Rainer, 2014. "Gender inequality, female leadership, and aid allocation: A panel analysis of aid for education," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. 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.
  7. Sèna Kimm Gnangnon, 2013. "How do OECD donor countries distribute foreign aid among developing countries during their fiscal episodes?," Working Papers halshs-00786009, HAL.

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