Publication

This research paper addresses criticism that development assistance lacks coordination between aid donors, and argues that competition for export markets and political support prevents donor countries from closer coordination of aid activities. To test these hypotheses, the authors perform logit and fractional logit estimations for a large sample of recipient countries and aid activities since the early 1970s. The empirical results reveal that export competition between donors is a major impediment to aid coordination. Tough less conclusive, we also find some evidence that donors' competition over political support prevents them from coordinating aid activities more closely.