Are Donor Countries Giving More or Less Aid?

Gupta, Sanjeev; Pattillo, Catherine; Wagh, Smita

doi:10.5089/9781451862614.001

Cited by 20 publications

(17 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…We find mixed evidence of the so‐called “small country bias.” Recipients with a smaller population receive more aid from the UK, while Germany and the US provide more aid to larger countries. The positive coefficient on the Cold War dummy confirms previous findings (Gupta et al., 2006) that aid increased as a result of the end of the Cold War from the UK, France, and Japan, ceteris paribus . However, we find a negative coefficient for both the USA and Germany.…”

Section: Resultssupporting

confidence: 88%

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

Hoeffler

Outram

2011

Review Development Economics

297

195

View full text Add to dashboard Cite

Previous studies of 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. In addition to comments on the statistical significance of our results we assess the relative economic importance of recipient need, merit, and donor self-interest. Our results indicate that all bilateral donors allocate aid according to their self-interest and recipient need. However, most bilateral donors seem to place little importance on recipient merit. Less than 1% of the variance of aid is accounted for by merit, ceteris paribus. The UK and Japan are exceptions: they allocate more aid to countries with higher growth, higher democracy scores, and fewer human rights abuses.

show abstract

Section: Resultssupporting

confidence: 88%

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

Hoeffler

Outram

2011

Review Development Economics

297

195

View full text Add to dashboard Cite

show abstract

“…The variables that we employ below, however, can hardly be assumed to explain this volatility. Rather, we expect them to explain the average share of total aid that a particular country receives from China over a longer period of time (see Gupta et al 2006). Given that we are interested in the differential effects of the explanatory variables over time, we do not pool the cross-sections either, but allow the coefficients of all variables to be different in each cross-section.…”

Section: Empirical Strategy and Datamentioning

confidence: 99%

Rogue aid? An empirical analysis of China's aid allocation

Dreher

Fuchs

2015

Canadian J of Economics

211

145

View full text Add to dashboard Cite

Foreign aid from China is often characterized as “rogue aid” that is guided by selfish interests alone. We collect data on Chinese project aid, food aid, medical staff and total aid money to developing countries, covering the 1956–2006 period, to empirically test to what extent self‐interests shape China's aid allocation. While political considerations shape China's allocation of aid, China does not pay substantially more attention to politics compared to Western donors. What is more, China's aid allocation seems to be widely independent of recipients' endowment with natural resources and institutional characteristics. Overall, denoting Chinese aid as “rogue aid” seems unjustified.

show abstract

“…Likewise, in recent years, donors have provided roughly one‐fourth of their ODA in the form of technical cooperation where a large share of it is allocated to personnel expenditures. A disaggregation of technical cooperation by sector shows that allocations to social infrastructure have increased since the 1990s, whereas those to economic infrastructure, agriculture, and industry have declined slightly and the combined share of economic infrastructure, agriculture, and industry has fallen from 25 to 16% in sub‐Saharan Africa (Gupta et al, 2006).…”

Section: Aid To Agriculturementioning

confidence: 99%

Development Aid to Agriculture and Economic Growth

Kaya

Gunter

2012

Review Development Economics

View full text Add to dashboard Cite

The link between foreign aid and economic growth has been a controversial issue with no strong consensus so far. This paper argues that a possible reason why some studies may conclude that aid is ineffective in promoting economic growth might be that not all aid is given for development purposes (i.e. aid given for strategic considerations, humanitarian reasons or emergency relief). This study classifies foreign aid into four subcategories: agricultural aid, social infrastructure aid, investment aid, and non-investment aid. Using the generalized method of moments (GMM) estimation technique on a Barro type growth regression with panel data from the aid recipient economies, this paper finds that when aid is directed to the agricultural sector of the developing countries, it is positively and significantly related to growth and can affect economic growth in the short run.

show abstract

Are Donor Countries Giving More or Less Aid?

Abstract: This Working Paper should not be reported as representing the views of the IMF.

Cited by 20 publications

References 8 publications

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

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

Rogue aid? An empirical analysis of China's aid allocation

Development Aid to Agriculture and Economic Growth

Contact Info

Product

Resources

About