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Japan and the International Whaling Commission: The Curse of Bilateralism in Multilateral Organizations
Unformatted Document Text:  6 aims to negate, qualify, or support the case brought against Japan by the anti-whalers. It differs from Miller and Dolšak (2007) and Strand et al. (2008) in one key way, however. Our panel includes all countries to which Japan has given aid from 1973-2005. Accordingly, aid recipients include countries that were always members of the IWC, countries that joined (and/or resigned) between 1973 and 2005, and countries that never joined. These data will allow us to capture the effect of both membership and voting at the commission on Japan’s foreign aid policy. 4. Modeling Aid Flows: To Whom Does Japan Give Foreign Aid and Why? One of the major complexities of studying Japan’s policy of foreign aid is the sheer magnitude of the Japanese Official Development Assistance program: from 1990 to 2000, for example, Japan was the world’s largest donor. Although the program has been scaled back by 10 percent per annum from 2000 onward, in absolute terms, Japan still ranks among the top three donors of aid along with the United States and European Union. Soderberg (2002) provides important details on three major phases of Japan’s ODA policy: (1) the period before 1973 during which aid was linked to trade and commercial motivations; (2) the period between the late 1970s and 1992 when ODA was driven by humanitarian concerns; and (3) the period after the ‘ODA Charter’ 13 was signed and aid policy became focused on environmental protection, democratization, and market liberalization (Soderberg, 2002: 1-5). Alesina and Dollar (2000) also provide insight into Japan’s motivations for donating aid and find, among other things, that a history of voting with Japan at the U.N. is significant and positive with respect to aid flows (Alesina and Dollar, 2000: 43). This is a particularly reassuring result given the findings of Kuziekmo and Werker (2006). For this study, we propose an empirical analysis inspired by the gravity model of international trade. 14 However, a pure gravity model would require pair-based analysis in a log-log format. In our study, we will use a cross-sectional time-series analysis with the FGLS estimator, using some variables coming from the gravity literature such as distance for instance. This model is commonly employed in the study of international trade. The dataset is composed of aggregate annual foreign aid received by the countries from Japan. We consider 169 countries to which Japan provides foreign aid. The data cover the period from 1973 to 2005, yielding a total sample of n=169×33=5577 bilateral observations. Since the dataset includes missing observations, the actual dataset is smaller and unbalanced. 15 We will also estimate our model using interaction variables. IWC is a dummy variable that takes a value of zero for every year when countries are not IWC members, and one from when countries are IWC members. For countries that are not yet IWC members the value will be zero for the whole sample. This approach will make us able to use these countries as a de facto control group, an approach that will be reinforced by the interaction variables. Moreover we interact this dummy variable with the variables representing political regime, GDP per capita, Debt per capita, Distance. This helps us isolate whether being an IWC member matters or not compared to not being a member, while using the exogenous variables we specified.

Authors: Donahue, Kenneth. and Warin, Thierry.
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6
aims to negate, qualify, or support the case brought against Japan by the anti-whalers. It
differs from Miller and Dolšak (2007) and Strand et al. (2008) in one key way, however.
Our panel includes all countries to which Japan has given aid from 1973-2005.
Accordingly, aid recipients include countries that were always members of the IWC,
countries that joined (and/or resigned) between 1973 and 2005, and countries that never
joined. These data will allow us to capture the effect of both membership and voting at
the commission on Japan’s foreign aid policy.

4. Modeling Aid Flows: To Whom Does Japan Give Foreign Aid and Why?
One of the major complexities of studying Japan’s policy of foreign aid is the sheer
magnitude of the Japanese Official Development Assistance program: from 1990 to 2000,
for example, Japan was the world’s largest donor. Although the program has been scaled
back by 10 percent per annum from 2000 onward, in absolute terms, Japan still ranks
among the top three donors of aid along with the United States and European Union.
Soderberg (2002) provides important details on three major phases of Japan’s ODA
policy: (1) the period before 1973 during which aid was linked to trade and commercial
motivations; (2) the period between the late 1970s and 1992 when ODA was driven by
humanitarian concerns; and (3) the period after the ‘ODA Charter’
13
was signed and aid
policy became focused on environmental protection, democratization, and market
liberalization (Soderberg, 2002: 1-5). Alesina and Dollar (2000) also provide insight into
Japan’s motivations for donating aid and find, among other things, that a history of voting
with Japan at the U.N. is significant and positive with respect to aid flows (Alesina and
Dollar, 2000: 43). This is a particularly reassuring result given the findings of Kuziekmo
and Werker (2006).

For this study, we propose an empirical analysis inspired by the gravity model of
international trade.
14
However, a pure gravity model would require pair-based analysis in
a log-log format. In our study, we will use a cross-sectional time-series analysis with the
FGLS estimator, using some variables coming from the gravity literature such as distance
for instance. This model is commonly employed in the study of international trade.

The dataset is composed of aggregate annual foreign aid received by the countries from
Japan. We consider 169 countries to which Japan provides foreign aid. The data cover the
period from 1973 to 2005, yielding a total sample of n=169×33=5577 bilateral
observations. Since the dataset includes missing observations, the actual dataset is
smaller and unbalanced.
15

We will also estimate our model using interaction variables. IWC is a dummy variable
that takes a value of zero for every year when countries are not IWC members, and one
from when countries are IWC members. For countries that are not yet IWC members the
value will be zero for the whole sample. This approach will make us able to use these
countries as a de facto control group, an approach that will be reinforced by the
interaction variables. Moreover we interact this dummy variable with the variables
representing political regime, GDP per capita, Debt per capita, Distance. This helps us
isolate whether being an IWC member matters or not compared to not being a member,
while using the exogenous variables we specified.


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