Arbeitspapier

Of donor coordination, free-riding, darlings, and orphans: The dependence of bilateral aid on other bilateral giving

Using data from 1988 to 2007, we examine to what extent bilateral aid flows of an individual donor to a country depend on aid flows from all other bilateral and multilateral donors to that country in that year. We thereby want to assess to what extent donor coordination, free-riding, selectivity, specialization, and common donor motivations drive bilateral aid allocation as these determinants would point to different dependence structures. Using approaches from spatial econometrics and controlling for endogeneity, we find that other bilateral flows lead to a significant increase in aid flows from a particular donor. The effects are particularly pronounced for recipients in Africa and the Middle East and so-called donor "orphans" who seem to be collectively shunned by bilateral aid donors. The positive dependence also seems to be related to donors following the lead of the largest donors. Over time, the positive dependence has become smaller. Overall the results suggest that donor coordination and free-riding are quantitatively less important than common donor interests and selectivity.

Sprache
Englisch

Erschienen in
Series: Discussion Papers ; No. 168

Klassifikation
Wirtschaft
Foreign Aid
International Policy Coordination and Transmission
Thema
aid
donor coordination
aid darlings
aid orphans

Ereignis
Geistige Schöpfung
(wer)
Davies, Ronald B.
Klasen, Stephan
Ereignis
Veröffentlichung
(wer)
Georg-August-Universität Göttingen, Courant Research Centre - Poverty, Equity and Growth (CRC-PEG)
(wo)
Göttingen
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Davies, Ronald B.
  • Klasen, Stephan
  • Georg-August-Universität Göttingen, Courant Research Centre - Poverty, Equity and Growth (CRC-PEG)

Entstanden

  • 2015

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