American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Democracy and Aid Donorship
American Economic Journal: Economic Policy
vol. 13,
no. 4, November 2021
(pp. 217–38)
Abstract
Almost half of the world's states provide bilateral development assistance. While previous research takes the set of donor countries as exogenous, this article introduces a new dataset on aid giving that covers all countries in the world, both rich and poor, and explores the determinants of aid donorship. It argues and shows empirically that democratic institutions support the setup of an aid program in richer countries but undermine its establishment in poorer countries. The findings hold in instrumental-variable regressions and the pattern is similar for the amount of aid.Citation
Budjan, Angelika J., and Andreas Fuchs. 2021. "Democracy and Aid Donorship." American Economic Journal: Economic Policy, 13 (4): 217–38. DOI: 10.1257/pol.20180582Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- F35 Foreign Aid
- H87 International Fiscal Issues; International Public Goods
- O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O19 International Linkages to Development; Role of International Organizations
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