Determinants of Japanese aid allocation: an econometric analysis

Cooray, N. S. and Shahiduzzaman, Md. (2004) Determinants of Japanese aid allocation: an econometric analysis. International Development Series , 2004 (4). pp. 2-19. ISSN 2004-0600

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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

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Authors retain copyright.
Faculty / Department / School: Historic - Faculty of Business - Department of Economics and Resource Management
Date Deposited: 24 Jan 2010 03:26
Last Modified: 02 Jul 2013 23:31
Uncontrolled Keywords: Japanese ODA policy, determinants of Japanese aid allocation, cross-sectional analysis, donor interest, recipient need
Fields of Research : 16 Studies in Human Society > 1606 Political Science > 160607 International Relations
16 Studies in Human Society > 1606 Political Science > 160606 Government and Politics of Asia and the Pacific

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