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Home bias in humanitarian aid: The role of regional favoritism in the allocation of international disaster relief

Author

Listed:
  • Christian Bommer

    (University of Goettingen, Faculty of Economic Sciences and Centre for Modern Indian Studies)

  • Axel Dreher

    (Heidelberg University and CEPR)

  • Marcello Perez-Alvarez

    (University of Goettingen, Faculty of Economic Sciences)

Abstract
Natural disasters represent a major challenge for human welfare across the globe. Given the prominent role of international humanitarian aid in alleviating human suffering, the investigation of its determinants is of paramount importance. While existing studies show its allocation to be influenced by donors’ foreign policy considerations, domestic political factors within recipient countries have not been systematically explored. This paper addresses this important research gap by investigating whether regional favoritism shapes humanitarian aid flows. Using a rich and unique dataset derived from reports of the Office of US Foreign Disaster Assistance (OFDA), we show that substantially larger amounts of aid are disbursed when natural disasters hit the birth region of the recipient countries’ political leader. While we find no evidence that US commercial or political interests affect the size of this home bias, the bias is stronger in countries with a weaker bureaucracy and governance, suggesting the absence of effective safeguards in the allocation of aid.

Suggested Citation

  • Christian Bommer & Axel Dreher & Marcello Perez-Alvarez, "undated". "Home bias in humanitarian aid: The role of regional favoritism in the allocation of international disaster relief," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 266, Courant Research Centre PEG.
    • Handle: RePEc:got:gotcrc:266
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    References listed on IDEAS

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    Cited by:

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    4. Wellner, Lukas & Dreher, Axel & Fuchs, Andreas & Parks, Bradley & Strange, Austin M., 2022. "Can aid buy foreign public support? Evidence from Chinese development finance," Kiel Working Papers 2214, Kiel Institute for the World Economy (IfW Kiel).
    5. Asmus, Gerda & Eichenauer, Vera & Fuchs, Andreas & Parks, Bradley, 2021. "Does India use development finance to compete with China? A subnational analysis," Kiel Working Papers 2189, Kiel Institute for the World Economy (IfW Kiel).
    6. Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2023. "Taste of home: Birth town bias in Geographical Indications," Economics & Statistics Discussion Papers esdp23089, University of Molise, Department of Economics.
    7. Dreher, Axel & Lang, Valentin & Reinsberg, Bernhard, 2024. "Aid effectiveness and donor motives," World Development, Elsevier, vol. 176(C).
    8. Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2024. "Political favouritism and inefficient management: Policy-makers’ birth town bias in EU quality certifications," Journal of Policy Modeling, Elsevier, vol. 46(3), pages 683-702.
    9. Brice Fabre & Marc Sangnier, 2022. "Where do politicians send pork? Evidence from central government transfers to French municipalities," DeFiPP Working Papers 2202, University of Namur, Development Finance and Public Policies.
    10. Ma, Guangrong & Qi, Qingyuan & Liu, Mengxin, 2023. "A lack of nostalgia: Hometown favoritism and allocation of intergovernmental transfer in China," China Economic Review, Elsevier, vol. 81(C).
    11. Tritto, Angela & Haini, Hazwan & Wu, Hongsen, 2024. "Help with strings attached? China’s medical assistance and political allegiances during the Covid-19 pandemic," World Development, Elsevier, vol. 178(C).
    12. Fernando Antonio Ignacio González & Lara Sofía Cantero & Pablo Ariel Szyszko, 2023. "Inequality and economic activity under regional favoritism: evidence from Argentina," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(2), pages 343-361, August.

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    More about this item

    Keywords

    humanitarian aid; natural disasters; regional favoritism; birth regions;
    All these keywords.

    JEL classification:

    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid

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