EconPapers    
Economics at your fingertips  
 

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

Anke Hoeffler () and Verity Outram

No 2008-19, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: Previous studies into aid allocation have concluded that foreign aid is allocated not only according to development needs but also according to donor self-interest. We revisit this topic and allow for donor as well as recipient specific effects in our analysis. Our results indicate that roughly half of the predicted value of aid is determined by donor specific effects. Of the remaining variation, recipient need accounts for 36 percent and donor selfinterest or about 16 percent. This suggests that the previous literature has overstated the importance of donor self-interest. However, bilateral donors seem to place little importance on recipient merit. Recipient merit, measured by growth, democracy and human rights, accounts for only two percent of predicted aid.

Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.csae.ox.ac.uk/materials/papers/2008-19text.pdf (application/pdf)

Related works:
Journal Article: Need, Merit, or Self‐Interest—What Determines the Allocation of Aid? (2011) Downloads
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:csa:wpaper:2008-19

Access Statistics for this paper

More papers in CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford Contact information at EDIRC.
Bibliographic data for series maintained by Julia Coffey ().

 
Page updated 2020-11-27
Handle: RePEc:csa:wpaper:2008-19