Publication

This paper examines the competition for export markets among the traditional donor countries of foreign aid. The authors find that large and strategically-oriented donors are more likely to give aid to recipients in trade-related sectors which have previously received aid from other export-competing donors. They find this not to be the case for more altruistic donors and for aid allocation in social infrastructure. These findings raise the important question of which group the 'new' donors such as China and other Asian countries will join when deciding on aid allocation.