Kiel Working Papers, Kiel Institute for World Economics
No 1601:
Are ‘New’ Donors Different? Comparing the Allocation of Bilateral Aid between Non-DAC and DAC Donor Countries
Axel Dreher, Peter Nunnenkamp and Rainer Thiele
Abstract: Major DAC donors are widely criticized for weak targeting
of aid, selfish aid motives and insufficient coordination. The emergence of
an increasing number of new donors may further complicate the coordination
of international aid efforts. On the other hand, new donors (many of which
were aid recipients until recently) may have competitive advantages in
allocating aid according to need and merit. Project-level data on aid by
new donors, as collected by the PLAID initiative, allow for empirical
analyses comparing the allocation behavior of new versus old donors. We
employ Probit and Tobit models and test for significant differences in the
distribution of aid by new and old donors across recipient countries. We
find that new donors (i) focus on closer neighbors, (ii) care less for
recipient need, (iii) exhibit a weaker bias towards badly governed
countries, (iv) respond to disasters, but with fewer resources than old
donors, and (v) do not pursue commercial self interest
Keywords: aid allocation, new donors, donor motives, Probit, Tobit; (follow links to similar papers)
JEL-Codes: F35; (follow links to similar papers)
27 pages, March 2010
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
kap-1601.pdf
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom