Are Democratizing Countries ‘Rewarded’ with Higher Levels of Foreign Aid?
AbstractThe paper examines how flows of foreign aid have reacted to events of democratization in developing countries. Using a panel dataset of 136 aid receiving countries between 1980 and 2009, aid allocation regressions reveal that donors in general have tended to react to visible, major democratic transitions by increasing aid to the partner country, but no significant increases can be identified in case of countries introducing smaller democratic reforms. The increases in aid flows are not sustained over time, implying that donors do not provide long term support to nascent democracies. Also, democratizations in Sub-Saharan Africa do not seem to have been rewarded with higher levels of aid.
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Bibliographic InfoPaper provided by Corvinus University of Budapest in its series Corvinus Economics Working Papers (CEWP) with number 1569.
Date of creation: May 2014
Date of revision:
foreign aid; aid allocation; democratization;
Find related papers by JEL classification:
- F35 - International Economics - - International Finance - - - Foreign Aid
- F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
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