Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71079
Authors: 
Öhler, Hannes
Nunnenkamp, Peter
Year of Publication: 
2013
Series/Report no.: 
Kiel Working Paper 1838
Abstract: 
The regional allocation of aid within recipient countries has been largely ignored in the aid allocation literature. 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, irrespective of regional needs. We do not find that the multilateral aid institutions take regional needs into account. Instead, favoritism appears to play an important role for location choices, in particular for physical infrastructure projects.
Subjects: 
aid allocation
within-country targeting
favoritism
World Bank
African Development Bank
JEL: 
F35
F53
Document Type: 
Working Paper

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