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  1. 1. Trade as a Motivation in Aid Allocation as the Economy of Donor Countries Fluctuates

    University essay from Handelshögskolan i Stockholm/Institutionen för nationalekonomi

    Author : Robin Berglund; Xiao-Min Ruan; [2014]
    Keywords : foreign aid; aid allocation; trade; economic fluctuations;

    Abstract : In this paper we examine whether foreign aid commitments to closer trading partners are less sensitive to economic fluctuations in the donor country. We argue that this is the case. If donors act in their own self-interest, they will prioritize aid to closer trading partners in economic difficult times, as a means to keep the exports up. READ MORE