Why donors of foreign aid do not coordinate: the role of competition for export markets and political support

Development assistance has been criticised for a lack of coordination between aid donors. This paper argues that competition for export markets and political support prevents donor countries from coordinating their aid activities between one another. To test these hypotheses, we perform logit and fr...

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Bibliographic Details
Main Authors: Fuchs, Andreas (Author) , Nunnenkamp, Peter (Author) , Öhler, Hannes (Author)
Format: Article (Journal)
Language:English
Published: 2015
In: The world economy
Year: 2015, Volume: 38, Issue: 2, Pages: 255-285
ISSN:1467-9701
DOI:10.1111/twec.12213
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Online Access:Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1111/twec.12213
Verlag, lizenzpflichtig, Volltext: https://onlinelibrary.wiley.com/doi/abs/10.1111/twec.12213
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Author Notes:Andreas Fuchs, Peter Nunnenkamp and Hannes Öhler
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Summary:Development assistance has been criticised for a lack of coordination between aid donors. This paper argues that competition for export markets and political support prevents donor countries from coordinating their aid activities between one another. To test these hypotheses, we perform logit and fractional logit estimations for a large sample of recipient countries and aid activities since the early 1970s. Our empirical results reveal that export competition between donors is a major impediment to aid coordination. Although less conclusive, we also find some evidence that donors' competition over political support prevents them from coordinating aid activities more closely.
Item Description:First published: 06 September 2014
Gesehen am 06.08.2021
Physical Description:Online Resource
ISSN:1467-9701
DOI:10.1111/twec.12213