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SUMMARY:Strategic Donor Competition in Foreign Aid - Evidence from a Spati
 al Panel Model for Sub-Saharan Africa - Luca Messerschmidt
DTSTART:20190212T131000Z
DTEND:20190212T140000Z
UID:TALK117067@talks.cam.ac.uk
CONTACT:Dr Jenny Zhao
DESCRIPTION:Do donor countries react to aid flows of others? Are economic 
 and political competitions between donors a reason for this strategic inte
 raction? Through ongoing trends of Globalization and the emergence of new 
 economies\, developing countries in Sub-Saharan Africa are enabled to coop
 erate with traditional western but also new donors\nlike BRICS countries a
 nd specifically China. In the manner of a South-South narrative\, non-DAC 
 countries have used foreign aid to gain a significant influence and challe
 nge the ancient foreign aid architecture. This paper aims at explaining un
 derlying patterns of how donors react in a globalized foreign aid market. 
 In order to measure the responsiveness\nof aid allocators to external pres
 sures\, we develop a spatial lag panel model by including spatially compet
 ition-weighted lag aid shares of other donors to the same recipient countr
 y. The analyses conducted provide evidence in favor of a positive relation
 ship between a donor’s engagement in a specific recipient country and ot
 her donors\nfor which this recipient is of similar strategic importance. F
 or political competition no significant effect could be measured. The rese
 arch shows heterogenous reactional patterns for different countries and mi
 ght provide useful information to understand donors behavior in times of a
 n increasingly competitive aid market and give a further clue about how do
 nor countries interact when allocating their foreign aid resources.
LOCATION:The Richard King Room\, Darwin College
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