Publication: Aid, Natural Disasters and the Samaritan’s Dilemma
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2009-06-01
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2012-03-19
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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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“Raschky, Paul A.; Schwindt, Manijeh. 2009. Aid, Natural Disasters and the Samaritan’s Dilemma. Policy Research working paper ; no. WPS 4952. © World Bank. http://hdl.handle.net/10986/4144 License: CC BY 3.0 IGO.”
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