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Need, Merit, or Self-Interest : what Determines the Allocation of Aid?

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2011

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Outram, Verity

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https://doi.org/10.1111/j.1467-9361.2011.00605.x
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Review of Development Economics. 2011, 15(2), pp. 237-250. ISSN 1363-6669. eISSN 1467-9361. Available under: doi: 10.1111/j.1467-9361.2011.00605.x

Zusammenfassung

Previous studies of aid allocation have concluded that foreign aid is allocated not only according to devel-opment needs but also according to donor self-interest. We revisit this topic and allow for donor- as well asrecipient-specific effects in our analysis. In addition to comments on the statistical significance of our resultswe assess the relative economic importance of recipient need, merit, and donor self-interest. Our resultsindicate that all bilateral donors allocate aid according to their self-interest and recipient need. However,most bilateral donors seem to place little importance on recipient merit. Less than 1% of the variance of aidis accounted for by merit,ceteris paribus. The UK and Japan are exceptions: they allocate more aid tocountries with higher growth, higher democracy scores, and fewer human rights abuses.

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ISO 690OUTRAM, Verity, Anke HOEFFLER, 2011. Need, Merit, or Self-Interest : what Determines the Allocation of Aid?. In: Review of Development Economics. 2011, 15(2), pp. 237-250. ISSN 1363-6669. eISSN 1467-9361. Available under: doi: 10.1111/j.1467-9361.2011.00605.x
BibTex
@article{Outram2011-05Merit-45545,
  year={2011},
  doi={10.1111/j.1467-9361.2011.00605.x},
  title={Need, Merit, or Self-Interest : what Determines the Allocation of Aid?},
  number={2},
  volume={15},
  issn={1363-6669},
  journal={Review of Development Economics},
  pages={237--250},
  author={Outram, Verity and Hoeffler, Anke}
}
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