Why Donors of Foreign Aid Do Not Coordinate: The Role of Competition for Export Markets and Political Support

31 Pages Posted: 10 Feb 2015

See all articles by Andreas Fuchs

Andreas Fuchs

Helmut Schmidt University Hamburg; Kiel Institute for the World Economy

Peter Nunnenkamp

University of Kiel

Hannes Öhler

University of Goettingen (Gottingen)

Multiple version iconThere are 2 versions of this paper

Date Written: February 2015

Abstract

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.

Suggested Citation

Fuchs, Andreas and Nunnenkamp, Peter and Öhler, Hannes, Why Donors of Foreign Aid Do Not Coordinate: The Role of Competition for Export Markets and Political Support (February 2015). The World Economy, Vol. 38, Issue 2, pp. 255-285, 2015. Available at SSRN: https://ssrn.com/abstract=2562685 or http://dx.doi.org/10.1111/twec.12213

Andreas Fuchs (Contact Author)

Helmut Schmidt University Hamburg ( email )

Holstenhofweg 85
Hamburg, 22043
Germany

Kiel Institute for the World Economy ( email )

Kiellinie 66
Kiel, Schleswig-Hosltein 24105
Germany

Peter Nunnenkamp

University of Kiel ( email )

D-24100 Kiel
Germany

Hannes Öhler

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
0
Abstract Views
199
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information