Biases in the distribution of bilateral aid: a regional decomposition analysis

Abstract

This article investigates income and population biases in the distribution of aid and decomposes recipients by geographic region. Previous analyses aggregate recipients and assume biases have an equal impact. Results demonstrate that although while a bias towards middle-income and medium-sized countries persists in the full sample, the extent of such biases differs significantly by region.

Keywords:

• aid biases
• fixed effects
• panel
• decomposition

JEL Classification:

• C23
• F35
• O50