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

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  • Nunnenkamp, Peter
  • Öhler, Hannes

Abstract

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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  • Nunnenkamp, Peter & Öhler, Hannes, 2011. "Aid Allocation through Various Official and Private Channels: Need, Merit, and Self-Interest as Motives of German Donors," World Development, Elsevier, vol. 39(3), pages 308-323, March.
  • Handle: RePEc:eee:wdevel:v:39:y:2011:i:3:p:308-323
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    Cited by:

    1. Acht, Martin & Omar Mahmoud, Toman & Thiele, Rainer, 2014. "Corrupt governments receive less bilateral aid: Governance and the delivery of foreign aid through non-government actors," Kiel Working Papers 1901, Kiel Institute for the World Economy (IfW).
    2. Jacky MATHONNAT & Marlène GUILLON, 2018. "What can we learn on Chinese aid allocation motivations from new available data? A sectorial analysis of Chinese aid to African countries," Working Papers P225, FERDI.
    3. Jacky MATHONNAT & Marlène GUILLON, 2018. "What can we learn on Chinese aid allocation motivations from new available data? A sectorial analysis of Chinese aid to African countries," Working Papers P225, FERDI.
    4. Bodenstein, Thilo & Kemmerling, Achim, 2015. "A Paradox of Redistribution in International Aid? The Determinants of Poverty-Oriented Development Assistance," World Development, Elsevier, vol. 76(C), pages 359-369.
    5. Marlène Guillon & Jacky Mathonnat, 2018. "What can we learn on Chinese aid allocation motivations from new available data? A sectorial analysis of Chinese aid to African countries," Post-Print hal-01777484, HAL.
    6. Stubbs, Thomas H. & Kentikelenis, Alexander E. & King, Lawrence P., 2016. "Catalyzing Aid? The IMF and Donor Behavior in Aid Allocation," World Development, Elsevier, vol. 78(C), pages 511-528.
    7. Gani Aldashev & Cecilia Navarra, 2017. "Development NGOs: Basic Facts," Working Papers ECARES ECARES 2017-36, ULB -- Universite Libre de Bruxelles.
    8. Nunnenkamp, Peter, 2016. "Recent patterns of post-conflict aid: Did donors help sustain peace?," Kiel Working Papers 2043, Kiel Institute for the World Economy (IfW).
    9. Fløgstad, Cathrin & Hagen, Rune Jansen, 2017. "Aid Dispersion: Measurement in Principle and Practice," World Development, Elsevier, vol. 97(C), pages 232-250.
    10. repec:elg:eechap:15325_15 is not listed on IDEAS
    11. repec:eee:wdevel:v:95:y:2017:i:c:p:268-284 is not listed on IDEAS
    12. Barthel, Fabian & Neumayer, Eric & Nunnenkamp, Peter & Selaya, Pablo, 2014. "Competition for Export Markets and the Allocation of Foreign Aid: The Role of Spatial Dependence among Donor Countries," World Development, Elsevier, vol. 64(C), pages 350-365.
    13. Axel Dreher & Peter Nunnenkamp & Maya Schmaljohann, 2015. "The Allocation of German Aid: Self-interest and Government Ideology," Economics and Politics, Wiley Blackwell, vol. 27(1), pages 160-184, March.
    14. Raschky, Paul A. & Schwindt, Manijeh, 2012. "On the channel and type of aid: The case of international disaster assistance," European Journal of Political Economy, Elsevier, vol. 28(1), pages 119-131.
    15. Gnangnon, Sèna Kimm, 2017. "Structural economic vulnerability, openness and bilateral development aid flows," Economic Analysis and Policy, Elsevier, vol. 53(C), pages 77-95.
    16. Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.
    17. repec:wsi:jicepx:v:08:y:2017:i:03:n:s1793993317500144 is not listed on IDEAS
    18. Hyun-Hoon Lee & Donghyun Park & Meehwa Shin, 2015. "Do Developing-country WTO Members Receive More Aid for Trade (AfT)?," The World Economy, Wiley Blackwell, vol. 38(9), pages 1462-1485, September.
    19. Acht, Martin & Mahmoud, Toman Omar & Thiele, Rainer, 2015. "Corrupt governments do not receive more state-to-state aid: Governance and the delivery of foreign aid through non-state actors," Journal of Development Economics, Elsevier, vol. 114(C), pages 20-33.
    20. Abrams M E Tagem, 2017. "Analysing the determinants of health aid allocation in sub-Saharan Africa," Discussion Papers 2017-09, University of Nottingham, CREDIT.
    21. repec:spr:fininn:v:1:y:2015:i:1:d:10.1186_s40854-015-0012-7 is not listed on IDEAS
    22. Hagen, Rune Jansen, 2014. "Rents and the Political Economy of Development Aid," Working Papers in Economics 07/14, University of Bergen, Department of Economics.

    More about this item

    Keywords

    aid allocation aid channels donor motives Germany Tobit models;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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