Natural Disasters and Foreign Aid Allocation: How Much, How Quickly, and to Whom?

Rabah Arezki, Youssouf Camara, Patrick Imam and Roland Kangni Kpodar
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Youssouf Camara: McGill University = Université McGill [Montréal, Canada]
Patrick Imam: International Monetary Fund (IMF)
Roland Kangni Kpodar: FERDI - Fondation pour les Etudes et Recherches sur le Développement International, International Monetary Fund (IMF)

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Abstract: Natural disasters provide quasi-experimental variation to study how foreign aid responds to shocks. Using data for 20 bilateral donors for the period going from 1995 to 2021 and a local-projection difference-in-differences design, we estimate the dynamic effects of disasters on aid commitments. Foreign aid rises significantly in the aftermath of shocks, but the response is short-lived and disproportionately benefits middle-income countries. Humanitarian aid reacts quickly, while development aid adjusts more slowly. The findings reveal persistent inequities in global disaster relief.

Keywords: Natural Disasters; Quai-experiment; Aid Allocation; Humanitarian Aid (search for similar items in EconPapers)
Date: 2026-03-18
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