What Factors Determine the Allocation of Aid by Arab Countries and Multilateral Agencies?

Journal of Development Studies, 39 (4), 2003, pp. 134-147

22 Pages Posted: 29 Aug 2012

See all articles by Eric Neumayer

Eric Neumayer

London School of Economics and Political Science (LSE)

Date Written: 2003

Abstract

This article provides a statistical analysis of the determinants of Arab aid allocation using Heckman’s two-step estimator. It is found that poorer, Arab, Islamic and Sub-Saharan African countries are more likely to receive some positive amount of Arab aid (gate-keeping stage). The same is true for countries not maintaining diplomatic relations with Israel as well as those with voting patterns in the United Nations General Assembly similar to Saudi Arabia. Arab and more populous countries also receive a higher share of the total aid allocated (level stage). The same is true for Islamic countries in the case of bilateral aid and countries with voting similarity in the case of multilateral aid. Donor interest, in particular Arab solidarity, plays a clear role at both stages, whereas recipient need as measured by a country’s level of income only affects the gate-keeping stage, not the level stage.

Suggested Citation

Neumayer, Eric, What Factors Determine the Allocation of Aid by Arab Countries and Multilateral Agencies? (2003). Journal of Development Studies, 39 (4), 2003, pp. 134-147 . Available at SSRN: https://ssrn.com/abstract=2137774

Eric Neumayer (Contact Author)

London School of Economics and Political Science (LSE) ( email )

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