What factors motivate foreign aid allocation?A comparison of the aid allocation patterns of multilateral and bilateral donors

Abstract

Aid allocation patterns have been measured and observed for over four decades and it has been noticed that the aid is allocated differently based on different factors like what kind of donor it is and how they measure the need for aid before donating it. In this study two set of regressions were run and in the first set of regressions, we compare aggregate aid flows from multilateral organizations and bilateral donors respectively, and in our second set we compare aid from five individual bilateral donors. Our study found that there were significant differences in what variables affected aid allocation in both our comparison between multilateral and bilateral donors, as well as in our comparison of different individual donors.