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primary topic: The Needy Donor: An Empirical Analysis of India’s Aid Motives

The Needy Donor: An Empirical Analysis of India’s Aid Motives
type: Article
abstract: It is puzzling that India, which has a large domestic constituency of people suffering from underdevelopment, chronic poverty and mal-governance, is emerging as an important aid donor. With the intension of understanding why poor countries provide foreign aid, this article is the first to econometrically analyze India’s aid allocation decisions. First, we utilize cross-sectional data on aid commitments by the Ministry of External Affairs to 125 developing countries, obtained in US dollars from AidData for the 2008-2010 period. Second, we compare India’s aid allocation with that of other donors. Our findings show that India’s aid allocation is partially in line with our expectations of the behavior of a “needy” donor. Commercial and political self-interests dominate India’s aid allocation. We find the importance of political interests to be significantly larger for India than for all donors of the Development Assistance Committee. Moreover, we find that countries which are closer geographically are favored, and that countries at a similar developmental stage are more likely to enter India’s aid program.
date: 2012
status: published
author list: authors
type: EPrint
type: WorkingPaperEPrint
is part of: repository
has document: The Needy Donor: An Empirical Analysis of India’s Aid Motives (PDF)
has document: The Needy Donor: An Empirical Analysis of India’s Aid Motives (Other)
subject: 330 Wirtschaft

The Needy Donor: An Empirical Analysis of India’s Aid Motives (PDF)
type: Document
has file: Fuchs_Vadlamannati_2012_dp532_1.2.pdf
has part: Fuchs_Vadlamannati_2012_dp532_1.2.pdf

Andreas Fuchs
type: Person
given name: Andreas
family name: Fuchs

Krishna Chaitanya Vadlamannati
type: Person
given name: Krishna Chaitanya
family name: Vadlamannati

The Needy Donor: An Empirical Analysis of India’s Aid Motives (Other)
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The Needy Donor: An Empirical Analysis of India’s Aid Motives (Other)
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The Needy Donor: An Empirical Analysis of India’s Aid Motives (Other)
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The Needy Donor: An Empirical Analysis of India’s Aid Motives (Other)
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primary topic: The Needy Donor: An Empirical Analysis of India’s Aid Motives

330 Wirtschaft
type: Concept
preferred label: 330 Economics @en