Publication

We employ Probit and Tobit models and test for significant differences in the distribution of aid by new and old donors across recipient countries. Major DAC donors are widely criticized for weak targeting of aid, selfish aid motives and insufficient coordination. Project-level data on aid by new donors allow for empirical analyses comparing the allocation behavior of new versus old donors. We find that new donors (i) focus on closer neighbors, (ii) care less for recipient need, (iii) exhibit a weaker bias towards badly governed countries, (iv) respond to disasters, but with fewer resources than old donors, and (v) do not pursue commercial self interest.