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dc.titleMultilateral Intermediation of Foreign Aid: What is the Trade-Off for Donor Countries?
dc.contributor.authorBobba, Matteo
dc.contributor.authorPowell, Andrew
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageUnited States
dc.date.available2011-02-07T00:00:00
dc.date.issue2006-12-31T00:00:00
dc.description.abstractWhy would bilateral donors intermediate aid through a multilateral and not extend aid directly? This paper suggests a trade-off: multiple bilateral donors for each recipient may imply coordination and strategic problems but intermediating through a multilateral may dilute individual donor objectives. The paper conducts traditional panel and truly bilateral regressions with bilateral-pair, fixed effects to model aid allocation decisions. The results confirm that politics is important for bilateral donors but also that aid fragmentation and strategic behavior affect aid allocation. Multilaterals solve strategic and coordination problems between donors and, while politics remains significant, there is some evidence for a dilution of this effect.
dc.identifier.doihttp://dx.doi.org/10.18235/0010877
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Multilateral-Intermediation-of-Foreign-Aid-What-is-the-Trade-Off-for-Donor-Countries.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectPublic Utility
dc.subject.keywordsMultilateral; Intermediation; Foreign Aid; Donor Countries; WP-594
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
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