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Aid in Conflict: Determinants of International Aid Allocation to Ukraine During the 2022 Russian Invasion

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Veröffentlicht/Copyright: 11. Dezember 2023
The Economists’ Voice
Aus der Zeitschrift The Economists’ Voice Band 21 Heft 1

Abstract

Governments have responded to the 2022 Russian invasion by committing substantial aid to Ukraine. This paper investigates this aid on a cross-national basis utilizing differences in economic, political, and geographic characteristics of donor countries. It advances the comprehension of aid allocation to Ukraine and argues that donors’ interests heavily influence bilateral aid to Ukraine. Empirically, a two-stage approach serves to identify the main determinants of aid allocation, analyzing both the initial decision to donate and the level of aid generosity. The regression analyses show that wealthier, more populous, more democratic countries as well as those who trade with Russia are more likely to support Ukraine while the impact of these factors is more nuanced when determining aid generosity. Ceteris paribus, EU and NATO members are more likely to donate and more generous in their aid efforts. The results also shed light on the complex role of former Soviet republics.

Keywords: Ukraine; foreign aid; aid allocation
JEL Classification: F35; H56; F51
Corresponding author: Constantin Schmidt, Heidelberg University, Heidelberg, Germany, E-mail:

Acknowledgment

I thank Lukas Wellner and Prof. Dr. Axel Dreher for their contributions as supervisors of the bachelor thesis this paper developed from. Their continued support and guidance throughout the process made this paper possible.

Appendix
Table A1:

Sample countries (gate-keeping stage).

Albania, Algeria, Angola, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Belize, Benin, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, Central African Republic, Chad, Chile, China, Colombia, Congo, Congo (Democratic Republic of the), Costa Rica, Cote d’Ivoire, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, Egypt, El Salvador, Estonia, Ethiopia, Fiji, Finland, France, Gabon, Georgia, Germany, Ghana, Greece, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hungary, India, Indonesia, Iraq, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kyrgyzstan, Latvia, Lebanon, Liberia, Lithuania, Luxembourg, Madagascar, Malawi, Malaysia, Mali, Malta, Mauritania, Mauritius, Mexico, Moldova, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, North Macedonia, Norway, Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Romania, Rwanda, Saudi Arabia, Senegal, Serbia, Sierra Leone, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Sudan, Sweden, Switzerland, Tajikistan, Tanzania, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Uganda, United Kingdom, United States, Uruguay, Zambia
Table A2:

Kiel institute donor countries (level-setting stage).

Australia, Austria, Belgium, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, United Kingdom, United States

  1. Donor classification in Antezza et al. 2022.

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Received: 2023-09-20
Accepted: 2023-11-15
Published Online: 2023-12-11

© 2023 Walter de Gruyter GmbH, Berlin/Boston

Artikel in diesem Heft

  1. Frontmatter
  2. Editorial
  3. Economic Policy Making Under Hardening Fiscal Constraints
  4. Policy Papers (No Special Focus)
  5. A Latticework of Inflation Models
  6. A Comparative Evaluation of Fiscal Stabilization Strategies during the Covid-19 Pandemic with Germany as a Reference Point
  7. The Relationship Between the German Current Account and Financial Account: Evidence from the Toda-Yamamoto Causality Approach
  8. The Tax Attractiveness of EU Locations for Corporate Investments: A Stocktaking of Past Developments and Recent Reforms
  9. Aid in Conflict: Determinants of International Aid Allocation to Ukraine During the 2022 Russian Invasion
  10. Policy Forum: Economic Policy in an Era of Hardening Fiscal Constraints
  11. Public Debt Ratios Will Increase For Some Time. We Must Make Sure That They Do Not Explode
  12. An EU Fund to Incentivise Public Investments with Positive Externalities
  13. The Case for Putting a Public Investment Clause into the German Debt Brake
  14. EU Debt Instruments and Fiscal Transparency: The Case of the EU Recovery Fund
  15. Explaining the Divergence in German and French Public Finances
  16. Fiscal Prospects for Italy
  17. The Swiss Debt Brake Is Democratic, Strict, Transparent, and Binding. A Model to Follow?
https://doi.org/10.1515/ev-2023-0049
Schlagwörter für diesen Artikel
Ukraine; foreign aid; aid allocation

Artikel in diesem Heft

  1. Frontmatter
  2. Editorial
  3. Economic Policy Making Under Hardening Fiscal Constraints
  4. Policy Papers (No Special Focus)
  5. A Latticework of Inflation Models
  6. A Comparative Evaluation of Fiscal Stabilization Strategies during the Covid-19 Pandemic with Germany as a Reference Point
  7. The Relationship Between the German Current Account and Financial Account: Evidence from the Toda-Yamamoto Causality Approach
  8. The Tax Attractiveness of EU Locations for Corporate Investments: A Stocktaking of Past Developments and Recent Reforms
  9. Aid in Conflict: Determinants of International Aid Allocation to Ukraine During the 2022 Russian Invasion
  10. Policy Forum: Economic Policy in an Era of Hardening Fiscal Constraints
  11. Public Debt Ratios Will Increase For Some Time. We Must Make Sure That They Do Not Explode
  12. An EU Fund to Incentivise Public Investments with Positive Externalities
  13. The Case for Putting a Public Investment Clause into the German Debt Brake
  14. EU Debt Instruments and Fiscal Transparency: The Case of the EU Recovery Fund
  15. Explaining the Divergence in German and French Public Finances
  16. Fiscal Prospects for Italy
  17. The Swiss Debt Brake Is Democratic, Strict, Transparent, and Binding. A Model to Follow?
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