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Motivation Models of Australia's Bilateral Aid Program: The Case of Indonesia

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  • Rukmani Gounder
  • D. P. Doessel

Abstract

This paper is concerned with the question: what motivates Australia's provision of overseas aid to Indonesia? The econometric results on time series data obtained by testing a recipient need and a donor interest model suggest both these concerns are relevant to Australian aid decisons on Indonesia To determine which model dominates, non-nested tests were conducted; these indicated acceptance of the recipient need model and rejection of the donor interest model. Thus Australia's aid to Indonesia was found to be determined by recipient need rather than donor interest.

Suggested Citation

  • Rukmani Gounder & D. P. Doessel, 1997. "Motivation Models of Australia's Bilateral Aid Program: The Case of Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 33(3), pages 97-110.
  • Handle: RePEc:taf:bindes:v:33:y:1997:i:3:p:97-110
    DOI: 10.1080/00074919712331337245
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    References listed on IDEAS

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    1. Pesaran, M. H., 1982. "On the comprehensive method of testing non-nested regression models," Journal of Econometrics, Elsevier, vol. 18(2), pages 263-274, February.
    2. McGillivray, Mark & Oczkowski, Edward, 1991. "Modelling the Allocation of Australian Bilateral Aid: A Two-Part Sample Selection Approach," The Economic Record, The Economic Society of Australia, vol. 67(197), pages 147-152, June.
    3. Maizels, Alfred & Nissanke, Machiko K., 1984. "Motivations for aid to developing countries," World Development, Elsevier, vol. 12(9), pages 879-900, September.
    4. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
    5. Godfrey, L. G. & Pesaran, M. H., 1983. "Tests of non-nested regression models: Small sample adjustments and Monte Carlo evidence," Journal of Econometrics, Elsevier, vol. 21(1), pages 133-154, January.
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