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On the channel and type of international disaster aid

  • Raschky, Paul A.
  • Schwindt, Manijeh

Research suggests that a donor country’s decision to provide post-disaster assistance is not only driven by the severity of a disaster and the resulting humanitarian needs in the recipient country, but also by strategic considerations. The authors argue that the identification of the determinants of the size of disaster assistance is a first step in the analysis of the donor’s behavior. Since all aid is not motivated by the same reasons, the evaluation of the donor country’s behavior requires a second step accounting for the type and the channel of aid provided. Using data on international disaster assistance between 2000 and 2007, the analysis examines both the donor countries'decision on the channel (bilateral versus multilateral) and the type of disaster relief (cash versus in-kind). The empirical results suggest that international disaster relief is not as much driven by the needs of the recipient country, but also by strategic interests (for example, oil or trade relationships) of the donor country. Bilateral and cash transfers are used as a vehicle to signal strategic interests, while multilateral and in-kind transfers are chosen to control for misuse in badly governed recipient countries.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4953.

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Date of creation: 01 Jun 2009
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Handle: RePEc:wbk:wbrwps:4953
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  1. Janet Currie & Firouz Gahvari, 2008. "Transfers in Cash and In-Kind: Theory Meets the Data," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 333-83, June.
  2. Alesina, Alberto & Dollar, David, 2000. " Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
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  4. Peter Huber & Klaus Nowotny, 2013. "Moving across Borders: Who is Willing to Migrate or to Commute?," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1462-1481, October.
  5. Fink, Guenther & Redaelli, Silvia, 2009. "Determinants of international emergency aid - humanitarian need only ?," Policy Research Working Paper Series 4839, The World Bank.
  6. Svensson, J., 1995. "When Is Foreign Aid Policy Credible? Aid Dependence and Conditionality," Papers 600, Stockholm - International Economic Studies.
  7. Garcia, Serge & Harou, Patrice & Montagné, Claire & Stenger, Anne, 2009. "Models for sample selection bias in contingent valuation: Application to forest biodiversity," Journal of Forest Economics, Elsevier, vol. 15(1-2), pages 59-78, January.
  8. Berthelemy, Jean-Claude & Tichit, Ariane, 2002. "Bilateral Donors' Aid Allocation Decisions: A Three-dimensional Panel Analysis," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-84, September.
  10. Firouz Gahvari & Enlinson Mattos, 2007. "Conditional Cash Transfers, Public Provision of Private Goods, and Income Redistribution," American Economic Review, American Economic Association, vol. 97(1), pages 491-502, March.
  11. J. Atsu Amegashie & Bazoumana Ouattara & Eric Strobl, 2007. "Moral Hazard and the Composition of Transfers: Theory with an Application to Foreign Aid," Working Papers 0702, University of Guelph, Department of Economics and Finance.
  12. Ariel Fiszbein & Norbert Schady & Francisco H.G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597.
  13. Dudley, Leonard & Montmarquette, Claude, 1976. "A Model of the Supply of Bilateral Foreign Aid," American Economic Review, American Economic Association, vol. 66(1), pages 132-42, March.
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