Are there biases in German bilateral aid allocations

Abstract

This paper presents new evidence on the nature of German bilateral foreign aid allocations. In particular, the paper focuses on the question of whether there are population and middle-income biases present in the disbursement of German assistance. Using data on German bilateral aid to 85 countries from 1973 to 1995 evidence supporting existence of a population bias is found, but no evidence is found of a middle-income bias. A bias, however, associated with a recipient's coverage under the Lomé Convention is found.