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

  • Nunnenkamp, Peter
  • Öhler, Hannes

Summary The 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, merit, and self-interest of donors for various channels of official and private German aid across a large sample of recipient countries in 2005-07. Our findings 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.

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File URL: http://www.sciencedirect.com/science/article/B6VC6-50X9SGT-1/2/892686e5a693887bbbd0d0e9204e2f0d
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Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 3 (March)
Pages: 308-323

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:3:p:308-323
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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  8. Jean-Claude Berthélemy, 2005. "Bilateral donors' interest vs. recipients' development motives in aid allocation : do all donors behave the same ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00193273, HAL.
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  16. Baulch, Bob, 2006. "Aid distribution and the MDGs," World Development, Elsevier, vol. 34(6), pages 933-950, June.
  17. Collier, Paul & Hoeffler, Anke, 2004. "Aid, policy and growth in post-conflict societies," European Economic Review, Elsevier, vol. 48(5), pages 1125-1145, October.
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  19. Nunnenkamp, Peter & Weingarth, Janina & Weisser, Johannes, 2009. "Is NGO aid not so different after all? Comparing the allocation of Swiss aid by private and official donors," European Journal of Political Economy, Elsevier, vol. 25(4), pages 422-438, December.
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  22. Berthelemy, Jean-Claude & Tichit, Ariane, 2002. "Bilateral Donors' Aid Allocation Decisions: A Three-dimensional Panel Analysis," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  23. Axel Dreher & Florian Mölders & Peter Nunnenkamp, 2010. "Aid Delivery through Non-governmental Organisations: Does the Aid Channel Matter for the Targeting of Swedish Aid?," The World Economy, Wiley Blackwell, vol. 33(2), pages 147-176, 02.
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