Aiding Middle-income Countries? The Case of Spain

The geographical allocation of Spanish aid has been little studied, despite its unusual concentration on middle-income countries. This paper develops a theoretical model in which aid allocation depends on a combination of recipient needs, donor interests and performance criteria, and estimates it ec...

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Bibliographic Details
Published in:Oxford development studies 2008-12, Vol.36 (4), p.409-438
Main Author: Tezanos Vazquez, Sergio
Format: Article
Language:English
Subjects:
Americas
Case studies
Cost effectiveness
Developing countries
Development economics
Econometrics
Economic aid
Economic assistance
Foreign policy
Income
National economy
Spain
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Summary:The geographical allocation of Spanish aid has been little studied, despite its unusual concentration on middle-income countries. This paper develops a theoretical model in which aid allocation depends on a combination of recipient needs, donor interests and performance criteria, and estimates it econometrically for Spain. The results show that the allocation of Spanish aid has been influenced both by Spain's own foreign policy interests and by recipient needs for poverty reduction and development (although not by the quality of recipient governance or recipient absorptive capacity). Former Spanish colonies received a disproportionate share of Spain's aid (as is true mutatis mutandis for other European countries), but aid is allocated among them with greater regard to recipient need than is Spain's aid to other developing countries.
ISSN:1360-0818
1469-9966
DOI:10.1080/13600810802455104