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Aiding Middle-income Countries? The Case of Spain

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  • Sergio Tezanos Vazquez

Abstract

The geographical allocation of Spanish aid has been little studied, despite its unusual concentration on middle-income countries. This paper develops a theoretical model in which aid allocation depends on a combination of recipient needs, donor interests and performance criteria, and estimates it econometrically for Spain. The results show that the allocation of Spanish aid has been influenced both by Spain's own foreign policy interests and by recipient needs for poverty reduction and development (although not by the quality of recipient governance or recipient absorptive capacity). Former Spanish colonies received a disproportionate share of Spain's aid (as is true mutatis mutandis for other European countries), but aid is allocated among them with greater regard to recipient need than is Spain's aid to other developing countries.

Suggested Citation

  • Sergio Tezanos Vazquez, 2008. "Aiding Middle-income Countries? The Case of Spain," Oxford Development Studies, Taylor & Francis Journals, vol. 36(4), pages 409-438.
    • Handle: RePEc:taf:oxdevs:v:36:y:2008:i:4:p:409-438
    DOI: 10.1080/13600810802455104
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    References listed on IDEAS

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    1. Alessia Isopi & George Mavrotas, 2006. "Aid Allocation and Aid Effectiveness: An Empirical Analysis," WIDER Working Paper Series RP2006-07, World Institute for Development Economic Research (UNU-WIDER).
    2. McGillivray, Mark, 2004. "Descriptive and prescriptive analyses of aid allocation: Approaches, issues, and consequences," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 275-292.
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    6. Burnside, Craig & Dollar, David, 2004. "Aid, policies, and growth : revisiting the evidence," Policy Research Working Paper Series 3251, The World Bank.
    7. Simon Feeny, 2003. "What Determines Foreign Aid to Papua New Guinea? An Inter-temporal Model of Aid Allocation," WIDER Working Paper Series DP2003-05, World Institute for Development Economic Research (UNU-WIDER).
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    1. Larrú, José María & Tezanos Vázquez, Sergio, 2012. "Ayuda oficial española al desarrollo: Los retos de la especialización geográfica y sectorial/Spanish Official Development Assistance: The Geographical and Sector Specialization Challenges," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 889-914, Diciembre.

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