Foreign Aid and (Big) Shocks: Evidence from Natural Disasters
IMF Working Papers, January 10, 2025
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- Foreign Aid and (Big) Shocks: Evidence from Natural Disasters
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Bibliographic details
- Authors: Rabah Arezki, Youssouf Camara, Patrick A. Imam, Kangni R Kpodar
- Published: January 10, 2025
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400299117.001
Overview and Research Question
- Research focus: effect of (big) shocks on the allocation of (bilateral) aid using natural disasters as natural experiments.
- Key methodology: natural disasters treated as natural experiments to identify causal effects on bilateral aid allocation.
Main Findings
- Aid commitment statistically significantly increases following natural disasters.
- Humanitarian aid precedes structural aid after natural disasters.
- The average effect of disasters on aid allocation is quantitatively significant.
- Poorest countries or countries faced with the most damaging natural disasters do not receive the most aid.
- No evidence that foreign aid commitment disburses faster following natural disasters.
- Political alignment with (major) donors is important in driving aid to disaster-affected countries with low state capacity.
Subject Areas and Keywords
- Subject: Aid flows, Bilateral aid, Disaster aid, Environment, Foreign aid, Natural disasters
- Keywords: Absorptive Capacity, Aid Allocation, Aid flows, Bilateral aid, country r, d index donor country, Disaster aid, donor community, evidence from natural disasters, figures entry, foreign aid commitment, Global, Natural Disasters, Political Alignment, recipient country
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- Working Paper