Follow the leader! The peer effect in aid supply decisions

De Matteis, Alessandro (2018) Follow the leader! The peer effect in aid supply decisions. Development Policy Review, 36 (6). pp. 631-648. ISSN 0950-6764

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    Abstract

    This study assesses the existence of imitative behaviour among donors in terms of their aid supply. The urgency in addressing this subject is motivated by an increasing degree of aid volatility and unpredictability which may be linked to donors’ imitative behaviour. Our results highlight that while any connection among donor peers is a potential channel for the transmission of aid volatility, the extent of such volatility decreases significantly in the presence of established imitative behaviour. This result leads to the consideration that the promotion of donor imitative behavior would contribute to containing the current growing trend of volatility in aid supply.

    Item Type: Article
    Uncontrolled Keywords: foreign aid,aid volatility,donor decision-making,donor coordination,peer effect
    Faculty \ School: Faculty of Social Sciences > School of International Development
    Faculty of Social Sciences > School of Economics
    Related URLs:
    Depositing User: Pure Connector
    Date Deposited: 06 Jun 2017 06:09
    Last Modified: 02 Dec 2018 20:30
    URI: https://ueaeprints.uea.ac.uk/id/eprint/63684
    DOI: 10.1111/dpr.12288

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