Foreign Aid Allocation: A Neural Network Approach


Aid Distribution
Kohonen Maps
Machine Learning
Data Mining

How to Cite

Foreign Aid Allocation: A Neural Network Approach. (2017). Journal of Business Strategies, 34(1), 33-56.


During the last twenty years, there have been strong supporters of foreign
aid, and equally strong critiques. The debate is based on an effort to establish a
causal relationship between foreign aid and economic growth, and it is still ongoing.
Rather than seeking to uncover the causal relationships, I examine foreign aid and
its relation to structural indicators in aid dependent countries using a special type
of artificial neural networks, known as Kohonen maps. The findings suggest that
aid allocation and coordination could be based on institutional and climate-based
similarities across recipient countries rather than the geographical proximity or the
cultural ties, or preferences, between the donor and recipient countries.


This article is distributed using a Creative Commons Attribution-NonCommercial 4.0 license. Copyright remains with the author(s).