Darlings and Orphans: Interactions Across Donors in International Aid

35 Pages Posted: 28 Jan 2019

See all articles by Ronald B. Davies

Ronald B. Davies

University College Dublin (UCD)

Stephan Klasen

University of Goettingen (Gottingen) - Faculty of Economics and Business Administration; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Date Written: January 2019

Abstract

We examine how the bilateral aid flows from an individual donor to a recipient depend on the aid flows from all other bilateral and multilateral donors to that recipient. Thereby, we assess to what extent issues including donor coordination, free‐riding, selectivity, specialization, and common donor interests drive bilateral aid allocations. We find that others’ bilateral flows lead to a significant increase in aid flows from a particular donor, but primarily within a given year. The effects are particularly pronounced for large donors and so‐called “darling” recipients. Overall, the results suggest that herding is a dominant feature of aid inter‐relationships.

Keywords: Aid, aid darlings, aid orphans, donor coordination

Suggested Citation

Davies, Ronald B. and Klasen, Stephan, Darlings and Orphans: Interactions Across Donors in International Aid (January 2019). The Scandinavian Journal of Economics, Vol. 121, Issue 1, pp. 243-277, 2019. Available at SSRN: https://ssrn.com/abstract=3322809 or http://dx.doi.org/10.1111/sjoe.12261

Ronald B. Davies (Contact Author)

University College Dublin (UCD) ( email )

Belfield, Dublin 4 4
Ireland

Stephan Klasen

University of Goettingen (Gottingen) - Faculty of Economics and Business Administration ( email )

Platz der Goettinger Sieben 3
Goettingen, 37073
Germany
+49-551-397303 (Phone)
+49-551-397302 (Fax)

HOME PAGE: www.vwl.wiso.uni-goettingen.de/klasen.html

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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