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On the channel and type of international disaster aid

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Author Info
Raschky, Paul A.
Schwindt, Manijeh

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Abstract

Research suggests that a donor country’s decision to provide post-disaster assistance is not only driven by the severity of a disaster and the resulting humanitarian needs in the recipient country, but also by strategic considerations. The authors argue that the identification of the determinants of the size of disaster assistance is a first step in the analysis of the donor’s behavior. Since all aid is not motivated by the same reasons, the evaluation of the donor country’s behavior requires a second step accounting for the type and the channel of aid provided. Using data on international disaster assistance between 2000 and 2007, the analysis examines both the donor countries'decision on the channel (bilateral versus multilateral) and the type of disaster relief (cash versus in-kind). The empirical results suggest that international disaster relief is not as much driven by the needs of the recipient country, but also by strategic interests (for example, oil or trade relationships) of the donor country. Bilateral and cash transfers are used as a vehicle to signal strategic interests, while multilateral and in-kind transfers are chosen to control for misuse in badly governed recipient countries.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4953.

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Date of creation: 01 Jun 2009
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Handle: RePEc:wbk:wbrwps:4953

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Keywords: Hazard Risk Management; Natural Disasters; Gender and Health; Development Economics&Aid Effectiveness; Governance Indicators;

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  5. Janet Currie & Firouz Gahvari, 2008. "Transfers in Cash and In-Kind: Theory Meets the Data," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 333-83, June.
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  6. Amegashie, J. Atsu & Ouattara, Bazoumanna & Strobl, Eric, 2007. "Moral Hazard and the Composition of Transfers: Theory with an Application to Foreign Aid," MPRA Paper 3158, University Library of Munich, Germany, revised 06 May 2007. [Downloadable!]
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  7. Dubin, Jeffrey A. & Rivers, Douglas., 1989. "Selection Bias in Linear Regression, Logit and Probit Models," Working Papers 698, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  8. Fink, Guenther & Redaelli, Silvia, 2009. "Determinants of international emergency aid - humanitarian need only ?," Policy Research Working Paper Series 4839, The World Bank. [Downloadable!]
  9. Ilyana Kuziemko & Eric Werker, 2006. "How Much Is a Seat on the Security Council Worth? Foreign Aid and Bribery at the United Nations," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 905-930, October. [Downloadable!] (restricted)
  10. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-84, September. [Downloadable!] (restricted)
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  11. 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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  12. Berthelemy, Jean-Claude & Tichit, Ariane, 2004. "Bilateral donors' aid allocation decisions--a three-dimensional panel analysis," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 253-274. [Downloadable!] (restricted)
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