The allocation of development aid assistance : do new donors have old motives?

Doucouliagos, Chris and Manning, Elizabeth 2009, The allocation of development aid assistance : do new donors have old motives?, in Proceedings of the Australasian Public Choice Conference 2009, Deakin University, Burwood, Victoria, pp. 1-27.

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Title The allocation of development aid assistance : do new donors have old motives?
Author(s) Doucouliagos, ChrisORCID iD for Doucouliagos, Chris
Manning, ElizabethORCID iD for Manning, Elizabeth
Conference name Australasian Public Choice. Conference (2009 : Burwood, Vic.)
Conference location Burwood, Victoria
Conference dates 9-11 December, 2009
Title of proceedings Proceedings of the Australasian Public Choice Conference 2009
Publication date 2009
Start page 1
End page 27
Publisher Deakin University
Place of publication Burwood, Victoria
Summary The aid allocation literature explores the motives behind development aid  assistance. This literature is enormous, yet surprisingly, the extant empirical  studies have in the main only focused on the motives of established donors. Consequently, relatively little is known of the motives of new donors. This paper explores the aid allocation motives of three relatively new DAC donors: Greece, Luxembourg, and Portugal. Both OLS and Tobit two-way effects estimators are used to model their aid allocation process. The results indicate that humanitarian concerns are not an important factor for these three donors. Greece contributes aid predominately to its neighbors and to transitional East European nations. Portugal is motivated by commercial interests and former colony status. The bandwagon effect exists in reverse for Portugal. Commercial interests operate also for Luxembourg. Additionally, Luxembourg appears to donate to smaller more developed countries and is less inclined to donate to East European nations.
Language eng
Field of Research 140202 Economic Development and Growth
Socio Economic Objective 940302 International Aid and Development
HERDC Research category E2 Full written paper - non-refereed / Abstract reviewed
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Document type: Conference Paper
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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