Determinants of donor generosity: A survey of the aid budget literature

Arbeitspapier

What determines the foreign aid effort of donor countries? We review the existing literature on donors' aid budgets and examine which of the suggested variables robustly determine aid effort, measured as Official Development Assistance (ODA) as a share of gross national income. More specifically, we empirically test 16 hypotheses using panel econometric methods for member countries of the Development Assistance Committee (DAC) in the 1976-2008 period. To test for the robustness of our results, we extend our dataset to 48 possible determinants of aid budgets and apply an Extreme Bounds Analysis (EBA). In our fixed effects regressions, we find that aid inertia, the donor country's GDP per capita, the existence of an independent aid agency, and colonial history have a robust and quantitatively relevant impact on countries' aid efforts. Among the potential substitutes for aid, remittances exert a robust effect. Excluding year fixed effects, political globalization, Russian military capacity, peer effects, aid effectiveness, and government debt also play a significant role.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Kiel Working Paper ; No. 1789

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Foreign Aid ; Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts ; International Fiscal Issues; International Public Goods
• Thema: Foreign aid ; Official Development Assistance ; Aid budget ; Extreme Bounds Analysis ; Entwicklungshilfe ; Öffentliche Ausgaben ; Schätzung ; Industriestaaten

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fuchs, Andreas ; Dreher, Axel ; Nunnenkamp, Peter
• Ereignis: Veröffentlichung
• (wer): Kiel Institute for the World Economy (IfW)
• (wo): Kiel
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/64835
• Letzte Aktualisierung: 20.09.2024, 08:23 MESZ