Determinants of Turkey’s foreign aid
behavior
Hüseyin Zengin and Abdurrahman Korkmaz
Abstract
This paper analyzes a hundred Turkish aid recipient countries in order to
explore the determinants of Turkey’s foreign aid behavior during the period
2005–2016. By estimating the model with the system-GMM estimator,
it is demonstrated that Turkey is a regular donor whose amount of foreign
aid is positively influenced by the export-based embeddedness of Turkish
firms in the recipient countries. Recipients with low levels of per-capita
income attract more Turkish aid. However, this income’s effect diminishes
in states that were formerly part of Ottoman territory. Recipient countries in
an aid relationship with OECD-DAC members also receive more foreign aid
from Turkey. In addition, Turkey disburses more foreign aid to recipient
countries that can be classified as Turkic republics. Turkish foreign aid
behavior is also motivated by Ottomanism, especially in the Balkans and
Eastern Europe. Finally, and interestingly, although Islam has a considerable
impact on attracting Turkish aid overall, this impact disappears in former
Ottoman states and Turkic republics.
Keywords: Foreign aid; Islamism; Ottomanism; rising donors
Introduction
Turkey has become a prominent and permanent donor country, with its offi-
cial development assistance (ODA) gradually reaching more than six billion
US dollars by 2016, up from 500 million US dollars in 2005. This increase
has definitely affected Turkey’s visibility in the developing world and interna-
tional community in a positive way. What is the motivation behind this
increase? Do historical and religious affiliations with recipients affect the
pattern of Turkish aid? Do economic relations matter for determining
Turkish aid? In this paper, we will undertake a quantitative analysis in order
to discover the determinants of Turkish foreign aid for the period 2005–2016.
In addition, the paper aims to reconsider the Justice and Development Party’s
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NEW PERSPECTIVES ON TURKEY
New Perspectives on Turkey, no. 60 (2019): 109–135 © New Perspectives on Turkey and Cambridge University Press 2019
10.1017/npt.2019.1
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