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Bilateral donors' interest vs. Recipients' development motives in aid allocation : do all donors behave the same ?

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Author Info
Jean-Claude Berthélemy () (TEAM)
Abstract

In this paper, I provide an overall empirical assessment of the motivations of official development assistance granted by rich countries to developing countries, as they are revealed by their aid allocation behaviours. Such behaviours result from a combination of self-interest purposes and of more altruistic development objectives. To perform this analysis, I use a three- dimensional panel dataset, combining the donor, recipient and time dimensions. Such data show a lot of heterogeneity in donor behaviours. Thanks to the width of this dataset, I can properly test differences of parameters among donors. In particular, these tests provide a way to compare the degree of altruism of the different donors.

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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number bla05001.

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Length: 35 pages
Date of creation: Jan 2005
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Handle: RePEc:mse:wpsorb:bla05001

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Related research
Keywords: International aid allocation; altruism.;

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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
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models

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  1. Chauvet, Lisa, 2003. "Socio-political instability and the allocation of international aid by donors," European Journal of Political Economy, Elsevier, vol. 19(1), pages 33-59, March. [Downloadable!] (restricted)
  2. Gang, Ira N. & Lehman, James A., 1990. "New directions or not: USAID in Latin America," World Development, Elsevier, vol. 18(5), pages 723-732, May. [Downloadable!] (restricted)
  3. Craig Burnside & David Dollar, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September. [Downloadable!] (restricted)
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  4. McGillivray, Mark & Oczkowski, Edward, 1992. "A Two-Part Sample Selection Model of British Bilateral Foreign Aid Allocation," Applied Economics, Taylor and Francis Journals, vol. 24(12), pages 1311-19, December.
  5. Dudley, Leonard & Montmarquette, Claude, 1976. "A Model of the Supply of Bilateral Foreign Aid," American Economic Review, American Economic Association, vol. 66(1), pages 132-42, March. [Downloadable!] (restricted)
  6. Finn Tarp & Christian F. Bach & Henrik Hansen & Søren Baunsgaard, 1998. "Danish Aid Policy: Theory and Empirical Evidence," Discussion Papers 98-06, University of Copenhagen. Department of Economics. [Downloadable!]
  7. Lahiri, Sajal & Raimondos-Moller, Pascalis, 2000. "Lobbying by Ethnic Groups and Aid Allocation," Economic Journal, Royal Economic Society, vol. 110(462), pages C62-79, March. [Downloadable!] (restricted)
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  8. McGillivray, Mark & Oczkowski, Edward, 1991. "Modelling the Allocation of Australian Bilateral Aid: A Two-Part Sample Selection Approach," The Economic Record, The Economic Society of Australia, vol. 67(197), pages 147-52, June.
  9. Enzo Grilli & Markus Riess, 1992. "EC aid to associated countries: distribution and determinants," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 128(2), pages 202-220, June. [Downloadable!] (restricted)
  10. Alesina, Alberto & Dollar, David, 2000. " Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March. [Downloadable!] (restricted)
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  11. Mcgillivray, M. & White, H., 1993. "Explanatory studies of aid allocation among developing countries : a critical survey," Working Papers - General Series 148, Institute of Social Studies. [Downloadable!]
  12. Easterly, william, 2001. "Growth implosions, debt explosions, and my Aunt Marilyn : do growth slowdowns cause public debt crises?," Policy Research Working Paper Series 2531, The World Bank. [Downloadable!]
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