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.
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.
Original language | English |
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Pages (from-to) | 631-648 |
Journal | Development Policy Review |
Volume | 36 |
Issue number | 6 |
Early online date | 20 May 2017 |
DOIs | |
Publication status | Published - Oct 2018 |
Keywords
- foreign aid
- aid volatility
- donor decision-making
- donor coordination
- peer effect