Needs-based targeting or favoritism? The regional allocation of multilateral aid within recipient countries

Hannes Öhler () and Peter Nunnenkamp

No 1838, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: The regional allocation of aid within recipient countries has been largely ignored in the aid allocation literature. We use geocoded data on the location of aid projects financed by the World Bank and the African Development Bank within a sample of 27 recipient countries to assess the claim of donors that their aid targets needy population segments. We also assess whether political leaders in these countries direct aid funds to their home region, irrespective of regional needs. We do not find that the multilateral aid institutions take regional needs into account. Instead, favoritism appears to play an important role for location choices, in particular for physical infrastructure projects.

Keywords: aid allocation; within-country targeting; favoritism; World Bank; African Development Bank (search for similar items in EconPapers)
JEL-codes: F35 F53 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Journal Article: Needs-Based Targeting or Favoritism? The Regional Allocation of Multilateral Aid within Recipient Countries (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1838

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