Aid, Natural Disasters and the Samaritan’s Dilemma
This paper discusses the impact of foreign aid on the recipient country's preparedness against natural disasters. The theoretical model shows that foreign aid can have two opposing effects on a country's level of mitigating activities. In...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090603154059 http://hdl.handle.net/10986/4144 |
| Summary: | This paper discusses the impact of
foreign aid on the recipient country's preparedness
against natural disasters. The theoretical model shows that
foreign aid can have two opposing effects on a
country's level of mitigating activities. In order to
test the theoretical propositions, the authors analyze the
effect of foreign aid dependence on ex-ante risk-management
activity proxied by the death toll from major storms, floods
and earthquakes occurring worldwide between 1980 and 2002.
They find evidence that the crowding-out effect of foreign
aid outweighs the preventive effect in the case of storms,
while there is mixed evidence in the case of floods and earthquakes. |
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