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Empirical Analyses of Emerging Donors in Development Cooperation

Subject Area Economic Policy, Applied Economics
Term from 2015 to 2023
Project identifier Deutsche Forschungsgemeinschaft (DFG) - Project number 271131907
 
Final Report Year 2023

Final Report Abstract

Our research project, initiated in 2015, has navigated the evolving landscape of foreign aid, characterized by the emergence of diverse donors and non-state actors alongside traditional sources and the lack of comprehensive data in this realm. During the first phase of our project, we made significant strides in constructing new datasets essential for the empirical analysis of aid flows. Additionally, we ventured into subnational analysis, using geocoded and remotely sensed data and spatial econometrics techniques. This approach allowed us to move beyond traditional country-year-based analyses, enhancing our statistical power and providing a more nuanced understanding of aid allocation and the effectiveness of aid at the subnational level. Our findings shed light on the proliferation of the donor landscape, the motives of foreign aid allocation by emerging donors as compared to traditional donors, and the effectiveness of aid as a soft power instrument. In the second phase of the project, we deepened the empirical analysis of these dynamics. We examined the distribution and effectiveness of aid at the level of individuals, subnational regions, and countries. Since traditional measures such as GDP and nighttime light are limited in capturing the complexity of development, we examined alternative measures of development, including health outcomes, migration preferences and flows, and attitudes towards donors. In doing so, this project contributed significantly to the evolving discourse on global aid effectiveness and its diverse actors. This project enabled us to produce high-quality publications in leading economics journals and outlets of neighboring disciplines (development studies, international relations). It has strengthened the ties with important cooperation partners and also generated substantial attention in non-academic outlets. Finally, this project has promoted the academic careers of five PhD candidates, who have meanwhile secured postdoctoral and assistant professor positions.

Publications

 
 

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