Trade linkages drive aid allocation, impacting Sub-Saharan Africa negatively.
The article explores why countries give aid to others. It finds that aid decisions are influenced by both self-interest and the needs of the recipient country. Economic and political ties between countries play a big role in aid allocation. Surprisingly, trade connections are more important than political relationships, especially for Sub-Saharan Africa. This means that aid is not just given based on political alliances, but also on economic factors. Overall, aid is more likely to go to countries that are good trading partners and have strong economies.