Determinants of Japanese aid allocation: an econometric analysis

Article


Cooray, N. S. and Shahiduzzaman, Md.. 2004. "Determinants of Japanese aid allocation: an econometric analysis." International Development Series . 2004 (4), pp. 2-19.
Article Title

Determinants of Japanese aid allocation: an econometric analysis

Article CategoryArticle
AuthorsCooray, N. S. (Author) and Shahiduzzaman, Md. (Author)
Journal TitleInternational Development Series
Journal Citation2004 (4), pp. 2-19
Number of Pages18
Year2004
Place of PublicationTokyo, Japan
Web Address (URL)http://www.iuj.ac.jp/research/archive/wpaper/wpdv04-4.pdf
Abstract

Economic self-interest and politico-strategic and humanitarian concerns motivate donor countries in their development assistance policies. A large amount of literature has pointed out that either economic self-interest or political self-interest played a pivotal role in the early phases of foreign aid programmes of many donors. Currently, almost all donors include humanitarian assistance in explaining their aid motives. We investigate how Japanese aid allocation policies have changed over the time and also identify empirically the major determinants of aid allocation. It is found from the empirical evidence that Japan takes national interest as well as recipient country needs into account in allocating their aid. The nature of Asian biasness in Japanese aid may continue given the high emphasis on national economic and security interests. Given the historical trend one can conclude that the same determinant factors may keep on playing vital roles in aid allocation decision-making at least for some years to come even though there has been an increased call for more assistance to poor regions

KeywordsJapanese ODA policy, determinants of Japanese aid allocation, cross-sectional analysis, donor interest, recipient need
ANZSRC Field of Research 2020440808. International relations
440807. Government and politics of Asia and the Pacific
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File reproduced in accordance with the copyright policy of the publisher/author.

Byline AffiliationsInternational University of Japan
School of Accounting, Economics and Finance
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