On the channel and type of aid: The case of international disaster assistance

The aim of this paper is to determine the drivers of a donor's decision on the composition of aid. We apply a dataset on international post-disaster assistance between 2000 and 2007 that includes information on the channel (bilateral vs. multilateral) and type (cash vs. in-kind) of each aid flow. Our results suggest that the choice of the channel and type of disaster assistance is mainly determined by humanitarian aspects, strategic interests and institutional quality. Moreover, we find differences in the allocation behavior between OECD and non-OECD countries.

► We examine a donor's decision on the composition of emergency aid. ► Our data distinguishes between the channel & type of aid. ► The composition is driven by quality of governance in the recipient country. ► Trade interests and recipient's oil resources also play a role. ► We find differences in the allocation behavior between OECD and non-OECD donors.