Is Corporate Aid Targeted to Poor and Deserving Countries? A Case Study of Nestle's Aid Allocation

摘要

Empirical evidence on the targeting of private aid is largely lacking, even though corporate donors are an increasingly important source of aid. We contribute to closing this gap by performing a case study of Nestle. The allocation of Nestle's aid iscompared to that of Swiss ODA and NGO aid, testing for both altruistic and selfish aid motivations. We conclude that Nestle's aid clearly lacks focus in terms of targeting poor countries, which appears to be the downside of the strong link between commercial presence and aid. Moreover, according to our Tobit estimations. Nestle grants more aid to recipient countries with stronger democratic but also more corrupt institutions.