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Aid Allocation through Various Official and Private Channels: Need, Merit, and Self-Interest as Motives of German Donors

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  • Nunnenkamp, Peter
  • Öhler, Hannes

Abstract

Summary The previous literature largely ignores the heterogeneity of aid channels used by each single donor country. We estimate Tobit models to assess the relative importance of recipient need, merit, and self-interest of donors for various channels of official and private German aid across a large sample of recipient countries in 2005-07. Our findings underscore the need for a disaggregated analysis of aid allocation. Aid channels differ significantly in the extent to which need and merit are taken into account. Yet, the German case does not reveal unambiguously superior aid channels.

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  • Nunnenkamp, Peter & Öhler, Hannes, 2011. "Aid Allocation through Various Official and Private Channels: Need, Merit, and Self-Interest as Motives of German Donors," World Development, Elsevier, vol. 39(3), pages 308-323, March.
    • Handle: RePEc:eee:wdevel:v:39:y:2011:i:3:p:308-323
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    More about this item

    Keywords

    aid allocation aid channels donor motives Germany Tobit models;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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