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Aid Allocation through Various Official and Private Channels: Need, Merit and Self-Interest as Motives of German Donors

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  • Peter Nunnenkamp

    (Kiel Institute for the World Economy)

  • Hannes Öhler

    (University of Göttingen)

Abstract

Previous literature largely ignores the heterogeneity of aid channels used by each single donor country. We estimate Tobit models to assess the relative importance of recipient need, recipient merit and self-interest of donors for various channels of official and private German aid across a large sample of recipient countries in 2005-2007. Our findings strongly underscore the need for a disaggregated analysis of aid allocation. Aid channels differ significantly in the extent to which need and merit are taken into account. Yet, the German case does not reveal unambiguously superior aid channels. Better targeted aid through some channels seems to be conditioned on political support by recipient countries in the UN General Assembly.

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Bibliographic Info

Paper provided by Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 16.

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Date of creation: 23 Nov 2009
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Handle: RePEc:got:gotcrc:016

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Keywords: Aid Allocation; Aid Channels; Donor Motives; Germany; Tobit models;

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References

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Citations

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Cited by:
  1. Martin Acht & Toman Omar Mahmoud & Rainer Thiele, 2014. "Corrupt Governments Receive Less Bilateral Aid: Governance and the Delivery of Foreign Aid through Non-Government Actors," Kiel Working Papers 1901, Kiel Institute for the World Economy.
  2. Axel Dreher & Peter Nunnenkamp & Maya Schmaljohann, 2013. "The Allocation of German Aid: Self-interest and Government Ideology," Kiel Working Papers 1817, Kiel Institute for the World Economy.
  3. Ruerd RUBEN, 2012. "Dimensionner l'aide au développement : ce que nous enseigne l'évaluation. Dimensioning Development Aid: Some Lessons from Evaluation," Revue d’économie du développement, De Boeck Université, vol. 26(4), pages 95-123.
  4. Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.
  5. Fabian Barthel & Eric Neumayer & Peter Nunnenkamp & Pablo Selaya, 2013. "Competition for Export Markets and the Allocation of Foreign Aid: The Role of Spatial Dependence among Donor Countries," Kiel Working Papers 1875, Kiel Institute for the World Economy.
  6. Paul A. Raschky & Manijeh Schwindt, 2010. "On the Channel and Type of Aid: The Case of International Disaster Assistance," Development Research Unit Working Paper Series 06-10, Monash University, Department of Economics.

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