Needs‐Based Targeting or Favoritism? The Regional Allocation of Multilateral Aid within Recipient Countries

27 Pages Posted: 2 Jul 2014

See all articles by Hannes Oehler

Hannes Oehler

affiliation not provided to SSRN

Peter Nunnenkamp

University of Kiel

Date Written: August 2014

Abstract

The regional allocation of aid within recipient countries has been largely ignored. We use geocoded data on the location of aid projects financed by the World Bank and the African Development Bank within a sample of 27 recipient countries to assess the claim of donors that their aid targets needy population segments. We also assess whether political leaders in these countries direct aid funds to their home region. We do not find that the multilateral institutions take regional needs into account. Instead, favoritism appears to play an important role for location choices, in particular for physical infrastructure projects.

Suggested Citation

Oehler, Hannes and Nunnenkamp, Peter, Needs‐Based Targeting or Favoritism? The Regional Allocation of Multilateral Aid within Recipient Countries (August 2014). Kyklos, Vol. 67, Issue 3, pp. 420-446, 2014. Available at SSRN: https://ssrn.com/abstract=2461938 or http://dx.doi.org/10.1111/kykl.12061

Hannes Oehler (Contact Author)

affiliation not provided to SSRN ( email )

Peter Nunnenkamp

University of Kiel ( email )

D-24100 Kiel
Germany

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