The Allocation of German Aid: Self‐Interest and Government Ideology

25 Pages Posted: 13 Feb 2015

See all articles by Axel Dreher

Axel Dreher

Heidelberg University

Peter Nunnenkamp

University of Kiel

Maya Schmaljohann

Overseas Development Institute (ODI)

Date Written: March 2015

Abstract

We investigate the importance of geo‐strategic and commercial motives for the allocation of German aid to 138 countries over the 1973–2010 period. We find that geo‐strategic and commercial motives matter. When we relate them to the political color of the German government in general, and the Ministry for Economic Cooperation and Development and the Federal Foreign Office in particular, we find their importance to be at least as strong under the socialist leadership. Socialist leadership decreases the amount of aid commitments, controlled for other factors.

Suggested Citation

Dreher, Axel and Nunnenkamp, Peter and Schmaljohann, Maya, The Allocation of German Aid: Self‐Interest and Government Ideology (March 2015). Economics & Politics, Vol. 27, Issue 1, pp. 160-184, 2015. Available at SSRN: https://ssrn.com/abstract=2564356 or http://dx.doi.org/10.1111/ecpo.12053

Axel Dreher (Contact Author)

Heidelberg University ( email )

Grabengasse 1
Heidelberg, 69117
Germany

HOME PAGE: http://www.axel-dreher.de

Peter Nunnenkamp

University of Kiel ( email )

D-24100 Kiel
Germany

Maya Schmaljohann

Overseas Development Institute (ODI)

111 Westminister Bridge Rd.
London, SE17JD
United Kingdom

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