Kiel Working Papers, Kiel Institute for World Economics
No 1817:
The Allocation of German Aid: Self-interest and Government Ideology
Axel Dreher, Peter Nunnenkamp and Maya Schmaljohann
Abstract: We investigate the importance of geo-strategic and
commercial motives for the allocation of German aid to 138 countries over
the 1973-2010 period. We find that geo-strategic and – less robustly –
commercial motives matter. When we relate geo-strategic and commercial
motives to the political color of the German government in general, and the
Ministry for Economic Cooperation and Development and the Federal Foreign
Office in particular, we find their importance to increase under socialist
leadership. Socialist leadership also decreases the amount of aid
commitments, controlled for other factors
Keywords: aid allocation; government ideology; (follow links to similar papers)
JEL-Codes: F35,; F53; (follow links to similar papers)
32 pages, January 2013
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