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What Factors Determine the Allocation of Aid by Arab Countries and Multilateral Agencies?

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Author Info
Eric Neumayer

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Abstract

This article provides a statistical analysis of the determinants of Arab aid allocation using Heckman's two-step estimator. It is found that poorer, Arab, Islamic and Sub-Saharan African countries are more likely to receive some positive amount of Arab aid (gate-keeping stage). The same is true for countries not maintaining diplomatic relations with Israel as well as those with voting patterns in the United Nations General Assembly similar to Saudi Arabia. Arab and more populous countries also receive a higher share of the total aid allocated (level stage). The same is true for Islamic countries in the case of bilateral aid and countries with voting similarity in the case of multilateral aid. Donor interest, in particular Arab solidarity, plays a clear role at both stages, whereas recipient need as measured by a country's level of income only affects the gate-keeping stage, not the level stage.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 39 (2003)
Issue (Month): 4 (April)
Pages: 134-147
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Handle: RePEc:taf:jdevst:v:39:y:2003:i:4:p:134-147

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Related research
Keywords: Arab; Aid; Development Assistance; Allocation; Donor Interest; Recipient Need;

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Cited by:
(explanations, 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.)
  1. Neumayer, Eric, 2002. "Arab-Related Bilateral and Multilateral Sources of Development Finance: Issues, Trends, and the Way Forward," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  2. McGillivray, Mark, 2006. "Aid Allocation and Fragile States," Working Papers DP2006/01, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  3. Isopi, Alessia & Mavrotas, George, 2006. "Aid Allocation and Aid Effectiveness: An Empirical Analysis," Working Papers RP2006/07, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  4. Thomas Barnebeck Andersen & Henrik Hansen & Thomas Markussen, 2004. "US Politics and World Bank IDA-Lending," Discussion Papers 05-06, University of Copenhagen. Department of Economics, revised May 2005. [Downloadable!]
    Other versions:
  5. Mavrotas, George & Villanger, Espen, 2006. "Multilateral Aid Agencies and Strategic Donor Behaviour," Working Papers DP2006/02, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  6. Larru, Jose Maria, 2009. "A structural analysis of foreign aid to ten Mediterranean countries," MPRA Paper 17850, University Library of Munich, Germany. [Downloadable!]
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