Relationships Between Aid Agencies

Abstract

This chapter examines the relationships between three primary aid agencies, Japan, the World Bank, and the Asian Development Bank, by scrutinizing the amount of aid they granted to Thailand from 1986 to 2015. The key findings are as follows. First, the aid amounts revealed that the World Bank was more involved after the financial crisis, while Japan was more involved after the big flood in 2011, implying that the World Bank has more interest in financial institutions and Japan has more interest in protecting industrial areas. Second, an OLS of the aid from each agency illustrates the long-term relationship between these three agencies, inferring that Japan looks to act relatively independently, the World Bank and the Asian Development Bank look to act mutually independently, and the Asian Development Bank has the ability to act mutually. Third, after examining their short-term relationships with a VAR model, there was almost no relationship between the three aid agencies except for Japan, which is slightly delayed for the Asian Development Bank.