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Determinants of Canadian bilateral aid allocations: humanitarian, commercial or political?

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  • Ryan Macdonald
  • John Hoddinott

Abstract

In this paper we examine the determinants of the allocation of Canadian bilateral aid over the period 1984-2000. We draw on models of donor behaviour that allow us to incorporate humanitarian, commercial and political considerations - the `trinity of mixed motives' - that affect Canadian aid. We find that allocations are moderately altruistic. Recipient country human rights and membership in the Commonwealth and La Francophonie also affect aid flows. Most strikingly, our results suggest that Canadian aid flows became less altruistic over this period and commercial motives became increasingly important.

Suggested Citation

  • Ryan Macdonald & John Hoddinott, 2004. "Determinants of Canadian bilateral aid allocations: humanitarian, commercial or political?," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 294-312, May.
    • Handle: RePEc:cje:issued:v:37:y:2004:i:2:p:294-312
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    Cited by:

    1. Alessandro De Matteis, 2016. "Whose poverty really matters when deciding aid volumes?," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 12(1/2), pages 28-53.
    2. Dalgaard, Carl-Johan, 2008. "Donor policy rules and aid effectiveness," Journal of Economic Dynamics and Control, Elsevier, vol. 32(6), pages 1895-1920, June.
    3. Bokyeong Park & Hongshik Lee, 2015. "Motivations for Bilateral Aid Allocation in Korea: Humanitarian, Commercial, or Diplomatic?," Asian Economic Papers, MIT Press, vol. 14(1), pages 180-197, Winter/Sp.
    4. Taehee Whang & Elena V. McLean & Chamseul Yu, 2025. "How bureaucratic competition shapes foreign aid allocation: The case of South Korea's aid agencies," Journal of International Development, John Wiley & Sons, Ltd., vol. 37(1), pages 129-149, January.
    5. Calì, Massimiliano & te Velde, Dirk Willem, 2011. "Does Aid for Trade Really Improve Trade Performance?," World Development, Elsevier, vol. 39(5), pages 725-740, May.
    6. Iliana Olivié & Aitor Pérez, 2016. "Why don’t donor countries coordinate their aid? A case study of European donors in Morocco," Progress in Development Studies, , vol. 16(1), pages 52-64, January.
    7. Denis Cogneau & Sylvie Lambert, 2006. "L'aide au développement et les autres flux Nord-Sud : complémentarité ou substitution?," Working Papers DT/2006/09, DIAL (Développement, Institutions et Mondialisation).

    More about this item

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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