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Political power and aid tying practices in the development assistance committee countries

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  • Pincin, Jared

Abstract

Using a panel of 22 OECD Development Assistance Committee countries over the 1979-2009 period, this paper examines the link between donor-political institutional features, particularly the fragmentation of executive power and the degree of competition in the legislative branch of government, and the share of tied aid in the aid budget of a donor. The empirical results show tied aid, both in levels and as a percentage of total aid, increases as the number of decision makers within the governing coalition increases and decreases as the proportion of excess seats a governing coalition holds above a simple majority increases.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39463.

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Date of creation: 14 Jun 2012
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Handle: RePEc:pra:mprapa:39463

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Keywords: Official Development Assistance (ODA); tied aid; fragmented government; political economy;

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  1. Arellano, Cristina & Bulír, Ales & Lane, Timothy & Lipschitz, Leslie, 2009. "The dynamic implications of foreign aid and its variability," Journal of Development Economics, Elsevier, vol. 88(1), pages 87-102, January.
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  11. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July.
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  13. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
  14. Svensson, Jakob, 2003. "Why conditional aid does not work and what can be done about it?," Journal of Development Economics, Elsevier, vol. 70(2), pages 381-402, April.
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