Foreign aid as a policy tool

This research sought to explain why states give foreign aid. More specifically, itaddressed recipient needs and donor interests. The dependent variable in this case was Official Development Aid (ODA). The independent variables included GDP/capita of the recipient, population of the recipient, the FDI of the recipient, defense pacts between the donor and the recipient, the colonial status of the recipient, and the donor power status. Regression analysis highlighted the importance of both recipient needs, and especially donor interests. This research is limited in its scope, and further research is recommended