Who's Afraid of Foreign Aid?: The Donors' Perspective

Gradstein, Mark; Chong, Alberto E.

dc.creator	Gradstein, Mark
dc.creator	Chong, Alberto E.
dc.date	2011-02-07T21:12:35Z
dc.date	2011-02-07T21:12:35Z
dc.date	2006-03-15
dc.date	2006-03-15
dc.date	2013-12-29T10:57:42Z
dc.date.accessioned	2014-09-08T23:50:55Z
dc.date.available	2014-09-08T23:50:55Z
dc.date.issued	2014-09-08
dc.identifier	http://www.iadb.org/en/publications/publication-detail,7101.html?id=6494
dc.identifier.uri	https://saber.ucab.edu.ve/xmlui/handle/123456789/15726
dc.description	Since efforts by industrial countries to increase the amount of foreign aid they provide have been on the rise recently, it is important to understand the determinants involved. This paper examines the factors affecting support for foreign aid among voters in donor countries. The theoretical model, which considers an endogenous determination of official and private aid flows, suggests that government efficiency is an important factor in this regard, and also ties individual income to aid support through the elasticity of substitution. An empirical analysis of individual attitudes, based on the World Values Surveys, reveals that two factors are positively related to an individual's willingness to support foreign aid: satisfaction with own government performance and individual relative income. Furthermore, when using donor country data, we find that aid is negatively tied to inequality, corruption and taxes. These results are quite consistent with the analytical framework.
dc.format	ACROBAT
dc.language	en
dc.relation	IDB Working Paper Series
dc.subject	Public Utilities
dc.subject	Servicios públicos domiciliarios
dc.subject	WP-556
dc.title	Who's Afraid of Foreign Aid?: The Donors' Perspective
dc.type	Working Papers
dc.coverage	Estados Unidos
dc.coverage	États-Unis
dc.coverage	United States
dc.coverage	Estados Unidos