Who Gives Aid to Whom and When?: Aid Accelerations, Shocks and Policies
AbstractWe 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 InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1133.
Length: 25 p.
Date of creation: 2011
Date of revision:
Publication status: Published in: European Journal of Political Economy 28 (2012) 4, 593-606
ODA; Growth Accelerations; Policies;
Other versions of this item:
- Brück, Tilman & Xu, Guo, 2012. "Who gives aid to whom and when? Aid accelerations, shocks and policies," European Journal of Political Economy, Elsevier, vol. 28(4), pages 593-606.
- Tilman Brück & Guo Xu, 2011. "Who Gives Aid to Whom and When?: Aid Accelerations, Shocks and Policies," Economics of Security Working Paper Series 49, DIW Berlin, German Institute for Economic Research.
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- F35 - International Economics - - International Finance - - - Foreign Aid
- F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
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