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Who Gives Aid to Whom and When?: Aid Accelerations, Shocks and Policies

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  • Tilman Brück
  • Guo Xu

Abstract

We 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. For a large sample of 145 recipient countries and 33 donors from 1960- 2007, we find that positive regime changes and wars are significant predictors of aid accelerations. Disaggregating aid flows by donors, we find indicative evidence for competing allocation rules, particularly among European donors. We argue that drivers of aid accelerations differ from drivers of average aid flows - a distinction that can reconcile some of the ambiguous empirical results in the aid literature.

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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Economics of Security Working Paper Series with number 49.

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Length: 25 p.
Date of creation: 2011
Date of revision:
Handle: RePEc:diw:diweos:diweos49

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Keywords: ODA; Growth Accelerations; Policies;

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Cited by:
  1. Michael Brzoska & Raphael Bossong & Eric van Um, 2011. "Security Economics in the European Context: Implications of the EUSECON Project," Economics of Security Working Paper Series, DIW Berlin, German Institute for Economic Research 58, DIW Berlin, German Institute for Economic Research.
  2. Andreas Fuchs & Peter Nunnenkamp & Hannes Öhler, 2013. "Why Donors of Foreign Aid Do Not Coordinate: The Role of Competition for Export Markets and Political Support," Kiel Working Papers, Kiel Institute for the World Economy 1825, Kiel Institute for the World Economy.

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