The Allocation of Development Aid Assistance: Do new donors have old motives?
AbstractThe aid allocation literature explores the motives behind development aid assistance. This literature is enormous, yet surprisingly, the extant empirical studies have in the main only focused on the motives of established donors. Consequently, relatively little is known of the motives of new donors. This paper explores the aid allocation motives of three relatively new DAC donors: Greece, Luxembourg, and Portugal. Both OLS and Tobit two-way effects estimators are used to model their aid allocation process. The results indicate that humanitarian concerns are not an important factor for these three donors. Greece contributes aid predominately to its neighbors and to transitional East European nations. Portugal is motivated by commercial interests and former colony status. The bandwagon effect exists in reverse for Portugal. Commercial interests operate also for Luxembourg. Additionally, Luxembourg appears to donate to smaller more developed countries and is less inclined to donate to East European nations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2009_17.
Date of creation: 11 Nov 2009
Date of revision:
Contact details of provider:
Postal: 221 Burwood Highway, Burwood 3125
Phone: 61 3 9244 3815
Web page: http://www.deakin.edu.au/buslaw/aef/index.php
foreign aid allocation; bilateral aid; economic development; humanitarian concerns.;
Find related papers by JEL classification:
- F35 - International Economics - - International Finance - - - Foreign Aid
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Raschky, Paul A. & Schwindt, Manijeh, 2012.
"On the channel and type of aid: The case of international disaster assistance,"
European Journal of Political Economy,
Elsevier, vol. 28(1), pages 119-131.
- Paul A. Raschky & Manijeh Schwindt, 2010. "On the Channel and Type of Aid: The Case of International Disaster Assistance," Monash Economics Working Papers 06-10, Monash University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr Xueli Tang).
If references are entirely missing, you can add them using this form.