Determinants of Donor Generosity: A Survey of the Aid Budget Literature

Andreas Fuchs, Axel Dreher and Peter Nunnenkamp

World Development, 2014, vol. 56, issue C, 172-199

Abstract: This article provides a survey of the aid budget literature and examines the determinants of the development aid efforts of 22 Development Assistance Committee (DAC) members over the 1976–2011 period. In fixed effects regressions, we identify aid inertia, per-capita GDP, the creation of an independent aid agency, colonial history, Russian military capacity, peer effects, terror incidents, aid to CEEC/NIS countries, and imports from developing countries as determinants of the Official Development Assistance (ODA)-to-GNI ratio. Excluding donor fixed effects, several variables, including colonial history and the aid agency dummy, are no longer significant; the impact of per-capita GDP gets weaker, while donors’ budget deficits decrease aid effort.

Keywords: foreign aid; Official Development Assistance; aid budget; Extreme Bounds Analysis (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (80)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X1300212X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Determinants of Donor Generosity: A Survey of the Aid Budget Literature (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:56:y:2014:i:c:p:172-199

DOI: 10.1016/j.worlddev.2013.09.004

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().