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Natural Disasters and Foreign Aid Allocation: How Much, How Quickly, and to Whom?

Author

Listed:
  • Rabah Arezki

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, Harvard Kennedy School)

  • Youssouf Camara

    (McGill University = Université McGill [Montréal, Canada])

  • Patrick Imam

    (International Monetary Fund (IMF))

  • Roland Kangni Kpodar

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, International Monetary Fund (IMF))

Abstract

Natural disasters provide quasi-experimental variation to study how foreign aid responds to shocks. Using data for 20 bilateral donors for the period going from 1995 to 2021 and a local-projection difference-in-differences design, we estimate the dynamic effects of disasters on aid commitments. Foreign aid rises significantly in the aftermath of shocks, but the response is short-lived and disproportionately benefits middle-income countries. Humanitarian aid reacts quickly, while development aid adjusts more slowly. The findings reveal persistent inequities in global disaster relief.

Suggested Citation

  • Rabah Arezki & Youssouf Camara & Patrick Imam & Roland Kangni Kpodar, 2026. "Natural Disasters and Foreign Aid Allocation: How Much, How Quickly, and to Whom?," Working Papers hal-05557745, HAL.
    • Handle: RePEc:hal:wpaper:hal-05557745
    Note: View the original document on HAL open archive server: https://hal.science/hal-05557745v1
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