ABSTRACT
The statistical analysis revealed a significant correlation between several of the independent variables and the allocation of foreign aid; but few of the independent variables are reliable predictors. To reliably predict the allocation of foreign aid, a variable must demonstrate a significant and consistent relationship over time. The Durbin-Watson test statistic for auto-correlation indicated that the domestic models are not negatively auto-correlated. For the sample size and for the number of explanatory variables, the null hypotheses that the models contain no positive auto-correlation is accepted for the proportion of total United States budget, multilateral, and unemployment indicators. To determine whether the foreign aid decision making determinants vary significantly between the Executive and Legislative branches of government, it is first necessary to determine the relationship between the requests for foreign aid funds and appropriations. To test the significance of this relationship, the Executive request for funds was regressed against Congressional appropriations.
