Aid, Trade and International Politics: An Assessment of the Growing Influence of Emerging Economies
Zusammenfassung der Projektergebnisse
The project analyzed empirically the increasing development activities of emerging economies in the developing world. In particular, we analyzed the determinants of aid allocation by emerging donors but also shed first light on aid budgets and the effects of these increasing activities on developing countries. Given the lack of prior empirical research on foreign aid provided by emerging new donors, the project involved several data collection efforts. Subsequently, we tested to which extent political and economic interests are predominant in emerging donors’ aid flows. The aid allocation decisions of these countries were compared with those of established donors organized in the OECD-DAC. A particular focus was placed on the analysis of foreign aid provided by China and India, two of the most important so-called new donors for which the procurement of data is particularly challenging. The findings on the allocation of non-DAC aid confirm that aid is largely about politics. In this regard, emerging donors are not new. While our results for India and emergency aid at least partially suggest that strategic considerations play a larger role for aid from non-DAC donors compared to their DAC counterparts, claims that these countries act as “rogue donors” are clearly overdone. Moreover, our results indicate that aid shocks from “traditional” sources of development funding are likely to induce conflict onset only if insufficient alternative funding is available from China. This underscores the necessity of creating, improving and utilizing new sources of information to understand the development activities of China and other non-DAC donors. Rigorous analyses on the effectiveness of non- DAC aid, including comparisons with DAC donors, and studies of aid coordination and competition between “old” and “new” players are almost non-existent and merit future research. Our research findings have been discussed in several German and international media outlets, including Deutsche Welle, Frankfurter Allgemeine Zeitung, Neue Züricher Zeitung, ORF, Radio France Internationale and Wirtschaftswoche, as well as in several policy blogs such as AidData First Tranche or VoxEU.org. The results have also been presented on the website of Ministry of Commerce of the People’s Republic of China and the KfW’s Entwicklungspolitik Kompakt, among others.
Projektbezogene Publikationen (Auswahl)
- (2013). Emergency Aid 2.0. Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: International Trade and Finance, No. D08-V3, September 2013
Fuchs, A. and N.-H. Klann
- (2013). New Donors. International Interactions 39 (3): 402-415
Dreher, A., A. Fuchs and P. Nunnenkamp
- (2013). The Needy Donor: An Empirical Analysis of India’s Aid Motives. World Development 44: 110-128
Fuchs, A. and K. C. Vadlamannati
- (2014). Tracking Under- Reported Financial Flows: China’s Development Finance and the Aid-Conflict Nexus Revisited. University of Heidelberg Department of Economics Discussion Paper Series 553
Strange, A., B. Parks, M. J. Tierney, A. Fuchs and A. Dreher
(Siehe online unter https://doi.org/10.2139/ssrn.2611110) - Rogue Aid? An Empirical Analysis of China’s Aid Allocation. Canadian Journal of Economics Volume 48, Issue 3, August/Août 2015, Pages 988-1023
Dreher, A. and A. Fuchs
(Siehe online unter https://doi.org/10.1111/caje.12166)
