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Bilateral Donor's Interest vs. Recipients' Development Motives in Aid Allocation: Do All Donors Behave the Same?

Author

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  • Jean-Claude Berthélemy

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

I provide an overall empirical assessment of the motivations of ODA granted by rich countries to developing countries, as revealed by aid allocation behaviors. Aid motives combine self-interested and altruistic objectives. I use a three-dimensional panel dataset, combining the donor, recipient and time dimensions, which shows a lot of heterogeneity in donor behavior. Thanks to the width of this dataset, I can test differences of parameters among donors and, in particular, compare their degrees of altruism. Switzerland, Austria, Ireland and most Nordic countries are among the most altruistic. Australia, France, Italy, and to some extent Japan and the United States are among the most egoistic.

Suggested Citation

  • Jean-Claude Berthélemy, 2006. "Bilateral Donor's Interest vs. Recipients' Development Motives in Aid Allocation: Do All Donors Behave the Same?," Post-Print halshs-00305510, HAL.
    • Handle: RePEc:hal:journl:halshs-00305510
    DOI: 10.1111/j.1467-9361.2006.00311.x
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    References listed on IDEAS

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    More about this item

    Keywords

    aid allocation;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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