Determinants of Arab aid allocation to African countries: using the regression analysis method during the period 2013-2018

Anbar, Mahmoud

doi:10.21608/esalexu.2021.181007

Determinants of Arab aid allocation to African countries: using the regression analysis method during the period 2013-2018

Document Type : Original Article

Author

Mahmoud Anbar

Faculty of Commerce, Aswan University

10.21608/esalexu.2021.181007

Abstract

Although there are many studies that have analyzed the determinants of the allocation of foreign aid, whether by the OECD countries or some agencies of the United Nations, there are few studies that have provided a systematic analysis of the allocation of foreign aid in general and Arab aid in particular. What is available from the literature does not answer the question about the factors that affect the distribution of this aid to the recipient countries.
This paper aims to identify the determinants of allocating Arab aid to African countries through regression analysis using the least squares method for four Arab donors and using Panel Data during the period from 2013 to 2018, using net official development aid as a dependent variable, and a set of independent variables that include variables that reflect Characteristics and needs of African countries receiving aid, and variables that reflect the interest of Arab donors.
The paper concluded that the determinants of the allocation of Arab aid, although in its entirety, are affected by the interests of Arab donors more than the needs of the recipient countries, but they differ from one donor to another. The results of the regression analysis showed that the economic interest, the Arab bias, and the relationship of the recipient countries with Israel are major determinants of the allocation of the UAE aid and the OPEC Fund for Economic Development, and it became clear that the population of the recipient country is a major determinant in the allocation of Kuwaiti aid. The results also showed that there is an Arab bias in the allocation of Saudi aid, and as for the institutional characteristics of the recipient countries, it became clear that the level of transparency enjoyed by the recipient country is a major determinant of allocating the OPEC Fund for Economic Development aid.

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