Kiel Working Papers, Kiel Institute for World Economics
No 1536:
Aid Allocation through Various Official and Private Channels: Need, Merit and Self-Interest as Motives of German Donors
Peter Nunnenkamp and Hannes Öhler
Abstract: Previous literature largely ignores the heterogeneity of
aid channels used by each single donor country. We estimate Tobit models to
assess the relative importance of recipient need, recipient merit and
self-interest of donors for various channels of official and private German
aid across a large sample of recipient countries in 2005-2007. Our findings
strongly underscore the need for a disaggregated analysis of aid
allocation. Aid channels differ significantly in the extent to which need
and merit are taken into account. Yet, the German case does not reveal
unambiguously superior aid channels. Better targeted aid through some
channels seems to be conditioned on political support by recipient
countries in the UN General Assembly
Keywords: aid allocation, aid channels, donor motives, Germany, Tobit models; (follow links to similar papers)
JEL-Codes: F35; (follow links to similar papers)
33 pages, July 2009
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