Who Gives Foreign Aid to Whom and Why?
AbstractThis paper studies the pattern of allocation of foreign aid from various donors to receiving countries. We find considerable evidence that the direction of foreign aid is dictated by political and strategic considerations, much more than by the economic needs and policy performance of the recipients. Colonial past and political alliances are the major determinants of foreign aid. At the margin, however, countries that democratize receive more aid, ceteris paribus. While foreign aid flows respond more to political variables, foreign direct investments are more sensitive to economic incentives, particularly property rights in the receiving countries. We also uncover significant differences in the behavior of different donors.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6612.
Date of creation: Jun 1998
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- NEP-CDM-1998-07-06 (Collective Decision-Making)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Qui reÃ§oit de l'aide humanitaire? IntÃ©rÃªts politiques et influence des mÃ©dias
by Emmanuel in Ecopublix on 2008-06-09 09:27:00
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