A New Approach to the Allocation of Aid among Developing Countries: Is the USA Different from the Rest?

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Main author: Harrigan, Jane
Other authors: Wang, Chengang
Format: Journal Article           
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id eprints-13960
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
description This paper attempts to explain the factors that determine the geographical allocation of foreign aid. Its novelty is that it develops a rigorous theoretical model and conducts the corresponding empirical investigations based on a large panel dataset. We run regressions for different major donors (United States, Canada, France, Italy, Japan, United Kingdom, and multilateral organizations) with the explicit objective of establishing whether the United States, in light of its geopolitical hegemony, behaves differently from others. We find that all the donors respond to recipient need in their allocation of aid, but that the United States puts less emphasis on this than the other donors with the exception of Japan. We also find that the United States puts more emphasis on donor–recipient linkages than do the other donors suggesting that the United States attaches greater importance to issues of donor interest, for example, geopolitical, commercial, and other links with specific recipients.
format Journal Article
author Harrigan, Jane
author_facet Harrigan, Jane
Wang, Chengang
authorStr Harrigan, Jane
author_letter Harrigan, Jane
author2 Wang, Chengang
author2Str Wang, Chengang
title A New Approach to the Allocation of Aid among Developing Countries: Is the USA Different from the Rest?
publisher Elsevier
publishDate 2011
url https://eprints.soas.ac.uk/13960/

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