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On the Channel and Type of International Disaster Aid

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  • Paul A. Raschky
  • Manijeh Schwindt

Abstract

Research suggests that a donor country's decision to provide post-disaster assistance is not only driven by the severity of a disaster and the resulting humanitarian needs in the recipient country but also by strategic considerations. We argue that the identification of the determinants of the size of disaster assistance is a first step in the analysis of the donor's behavior. Since all aid is not motivated by the same reasons, the evaluation of the donor country's behavior requires a second step accounting for the type and the channel of aid provided. Using data on international disaster assistance between 2000 and 2007 one can examine both the donor countries' decision on the channel (bilateral vs. multilateral) and the type of disaster relief (cash vs. in-kind). The empirical results suggest that international disaster relief is not as much driven by the needs of the recipient country but also by strategic interests (e.g. oil, trade relationships) of the donor country. Bilateral and cash transfers are used as a vehicle to signal strategic interests, while multilateral and in-kind transfers are chosen to control for misuse in badly governed recipient countries.

Suggested Citation

  • Paul A. Raschky & Manijeh Schwindt, 2009. "On the Channel and Type of International Disaster Aid," Working Papers 2009-16, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2009-16
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    References listed on IDEAS

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    Cited by:

    1. Geethanjali Selvaretnam & Kannika Thampanishvong & David Ulph, "undated". "Saving and Re-building Lives: an Analysis of the Determinants of Disaster Relief," CRIEFF Discussion Papers 1202, Centre for Research into Industry, Enterprise, Finance and the Firm.
    2. 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.
    3. Oscar Becerra & Eduardo Cavallo & Ilan Noy, 2010. "In the Aftermath of Large Natural Disasters, what happens to foreign aid?," Working Papers 201018, University of Hawaii at Manoa, Department of Economics.

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    More about this item

    Keywords

    Foreign aid; natural disasters; bilateral vs. multilateral; type of aid;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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