What determines foreign aid? The donors' perspective

Alberto Chong, Mark Gradstein

Research output: Contribution to journalArticle in a journalpeer-review

81 Scopus citations

Abstract

This paper examines the factors affecting the support for foreign aid among voters in donor countries. A simple theoretical model, which considers an endogenous determination of official and private aid flows, relates individual income to aid support and also suggests that government efficiency is an important factor in this regard. The empirical analysis of individual attitudes, based on the World Values Surveys, reveals that satisfaction with own government performance and individual relative income are positively related to the willingness to provide foreign aid. Furthermore, using actual donor country data we find that aid is adversely affected by own government inefficiency.
Original languageEnglish
Pages (from-to)1-13
Number of pages13
JournalJournal of Development Economics
Volume87
Issue number1
DOIs
StatePublished - 1 Aug 2008
Externally publishedYes

Keywords

  • Corruption
  • Development
  • Donors
  • Foreign aid
  • Perceptions

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