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Determinants of Canadian bilateral aid allocations: humanitarian, commercial or political?

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  • Ryan Macdonald
  • John Hoddinott

Abstract

. In this paper we examine the determinants of the allocation of Canadian bilateral aid over the period 1984–2000. We draw on models of donor behaviour that allow us to incorporate humanitarian, commercial and political considerations – the ‘trinity of mixed motives’– that affect Canadian aid. We find that allocations are moderately altruistic. Recipient country human rights and membership in the Commonwealth and La Francophonie also affect aid flows. Most strikingly, our results suggest that Canadian aid flows became less altruistic over this period and commercial motives became increasingly important. JEL Classification: H50, O10 Les déterminants des allocations de l’aide humanitaire canadienne : humanitaires, commerciaux ou politiques? Ce mémoire étudie les déterminants de l’allocation de l’aide bilatérale canadienne dans la période 1984–2000. On utilise des modèles de comportement de donateur qui permettent de prendre en considérations les motivations humanitaires, commerciales et politiques – la trinité de motifs mixtes – qui affectent l’aide canadienne. On découvre que les allocations sont modérément altruistes. Le fait pour un pays de défendre bien les droits de la personne, et d’être membre du Commonwealth et de la Francophonie, affecte les flux d’aide. Plus important, peut‐être, les résultats suggèrent qu’au cours de cette période les flux d’aide canadienne deviennent moins altruistes et les motifs commerciaux de plus en plus importants.

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  • Ryan Macdonald & John Hoddinott, 2004. "Determinants of Canadian bilateral aid allocations: humanitarian, commercial or political?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(2), pages 294-312, May.
    • Handle: RePEc:wly:canjec:v:37:y:2004:i:2:p:294-312
    DOI: 10.1111/j.0008-4085.2004.00003.x
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    2. Alessandro De Matteis, 2016. "Whose poverty really matters when deciding aid volumes?," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 12(1/2), pages 28-53.
    3. Dalgaard, Carl-Johan, 2008. "Donor policy rules and aid effectiveness," Journal of Economic Dynamics and Control, Elsevier, vol. 32(6), pages 1895-1920, June.
    4. Bokyeong Park & Hongshik Lee, 2015. "Motivations for Bilateral Aid Allocation in Korea: Humanitarian, Commercial, or Diplomatic?," Asian Economic Papers, MIT Press, vol. 14(1), pages 180-197, Winter/Sp.
    5. Calì, Massimiliano & te Velde, Dirk Willem, 2011. "Does Aid for Trade Really Improve Trade Performance?," World Development, Elsevier, vol. 39(5), pages 725-740, May.
    6. Iliana Olivié & Aitor Pérez, 2016. "Why don’t donor countries coordinate their aid? A case study of European donors in Morocco," Progress in Development Studies, , vol. 16(1), pages 52-64, January.

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    More about this item

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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