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Darlings and Orphans: Interactions across Donors in International Aid

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  • Ronald B. Davies
  • Stephan Klasen

Abstract

We examine how the bilateral aid flows from an individual donor to a recipient depend on the aid flows from all other bilateral and multilateral donors to that recipient. Thereby, we assess to what extent issues including donor coordination, free‐riding, selectivity, specialization, and common donor interests drive bilateral aid allocations. We find that others’ bilateral flows lead to a significant increase in aid flows from a particular donor, but primarily within a given year. The effects are particularly pronounced for large donors and so‐called “darling” recipients. Overall, the results suggest that herding is a dominant feature of aid inter‐relationships.

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  • Ronald B. Davies & Stephan Klasen, 2019. "Darlings and Orphans: Interactions across Donors in International Aid," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 243-277, January.
    • Handle: RePEc:bla:scandj:v:121:y:2019:i:1:p:243-277
    DOI: 10.1111/sjoe.12261
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    2. Hendrik KRUSE & Thais NUNEZ-ROCHA & Camélia TURCU, 2019. "Infrastructure aid for resource trade? The crossroads of strategy and sustainable development," LEO Working Papers / DR LEO 2728, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    3. Fuchs, Andreas & Kaplan, Lennart & Kis-Katos, Krisztina & Schmidt, Sebastian S. & Turbanisch, Felix & Wang, Feicheng, 2022. "China's aid exports to Africa and the COVID-19 pandemic: How much? Where? What?," PEGNet Policy Briefs 27/2022, PEGNet - Poverty Reduction, Equity and Growth Network, Kiel Institute for the World Economy (IfW Kiel).
    4. Andreas Fuchs & Hannes Öhler, 2021. "Does private aid follow the flag? An empirical analysis of humanitarian assistance," The World Economy, Wiley Blackwell, vol. 44(3), pages 671-705, March.
    5. Dreher, Axel & Fuchs, Andreas & Hodler, Roland & Parks, Bradley C. & Raschky, Paul A. & Tierney, Michael J., 2019. "African leaders and the geography of China's foreign assistance," Journal of Development Economics, Elsevier, vol. 140(C), pages 44-71.
    6. Nathalie Ferrière, 2022. "To Give or Not to Give? How Do Other Donors React to European Food Aid Allocation?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 147-171, February.
    7. Francesca G. Caselli & Andrea F. Presbitero, 2020. "Aid Effectiveness in Fragile States," Mo.Fi.R. Working Papers 158, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    8. Léa Marchal & Claire Naiditch & Betül Simsek, 2022. "How Foreign Aid Affects Migration: Quantifying Transmission Channels," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03887455, HAL.
    9. Hoekman, Bernard & Shingal, Anirudh, 2024. "Development Goals, commercial interest and EU Aid-for-Trade," World Development, Elsevier, vol. 173(C).
    10. Kaplan, Lennart, 2020. "Systemic challenges and opportunities of Franco-German development cooperation," IDOS Discussion Papers 10/2020, German Institute of Development and Sustainability (IDOS).
    11. Neha Bhardwaj Upadhayay, 2020. "Uncovering the proliferation of contingent protection through channels of retaliation, gender and development assistance," Erudite Ph.D Dissertations, Erudite, number ph20-02 edited by Julie Lochard & Catherine Bros.
    12. Nathalie Ferrière & Camille Noûs, 2022. "Filling the "decency gap"? Donors' reaction to the US policy on international family planning aid," Working Papers hal-03740404, HAL.
    13. Kimberley Anh Thomas, 2023. "Compelled to Compete: Rendering Climate Change Vulnerability Investable," Development and Change, International Institute of Social Studies, vol. 54(2), pages 223-250, March.
    14. Mandon, Pierre & Woldemichael, Martha Tesfaye, 2023. "Has Chinese aid benefited recipient countries? Evidence from a meta-regression analysis," World Development, Elsevier, vol. 166(C).

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