Reflections of globalisation: The influence of economic factors on the international development assistance allocations

The paper examines the results of a cross section regression analysis against four hypotheses. The primary hypothesis concerned the effect of economic prosperity and growth on “willingness to assist”. The positive prosperity effect was unsurprisingly confirmed. In connection to the second hypothesis, the regression results supported the view that the more integrated the DAC countries were into the global economy, the more inclined they were to participate in sharing the global responsibility through their commitment to foreign assistance. The results concerning the third hypothesis, however, showed that rather than increase the DAC countries willingness to assist their commercial dealings with the developing world actually had a negative effect on their ODA. The final hypothesis concerned the changed impact of economic factors on ODA since the late 1980s intensified globalisation. This hypothesis was confirmed by the findings of the analysis of the results of the six, split year time-batch regressions.