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 links are more important than political ties, especially for Sub-Saharan Africa. This means that aid is not just given based on relationships, but also on how well a country is doing economically.