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Donor motives, public preferences and the allocation of UK foreign aid: a discrete choice experiment approach

Author

Listed:
  • Simon Feeny

    () (RMIT University)

  • Paul Hansen

    (University of Otago)

  • Stephen Knowles

    (University of Otago)

  • Mark McGillivray

    (Deakin University)

  • Franz Ombler

    (1000minds)

Abstract

This paper develops a prescriptive model for the inter-country allocation of aid from the UK government. The model incorporates three broad motives for allocating aid: recipient need, donor interests and absorptive capacity (the ability of recipient countries to use aid effectively). To determine each motive’s relative importance, a discrete choice experiment (DCE) involving more than 1600 members of the UK general population was conducted. Absorptive capacity is the most important motive, and recipient need and donor interests are equally but much less important. Current UK aid allocations are compared with those prescribed by the model. Some countries, including China, India and Indonesia, would receive much more if aid were allocated according to the model; other countries, including Afghanistan, Ethiopia and Pakistan, would receive much less. Cluster analysis reveals that the political parties voted for by DCE participants at the 2015 general election are, inter alia, related to their aid preferences.

Suggested Citation

  • Simon Feeny & Paul Hansen & Stephen Knowles & Mark McGillivray & Franz Ombler, 2019. "Donor motives, public preferences and the allocation of UK foreign aid: a discrete choice experiment approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(3), pages 511-537, August.
  • Handle: RePEc:spr:weltar:v:155:y:2019:i:3:d:10.1007_s10290-019-00351-4
    DOI: 10.1007/s10290-019-00351-4
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Foreign aid; Discrete choice experiment (DCE); Cluster analysis; UK;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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