Lobbying by Ethnic Groups and Aid Allocation
We develop a political-economic model of foreign aid allocation. Each ethnic group in the donor country lobbies the government to allocate more aid to its country of origin, and the government accepts political contributions from lobby groups. Initial per-capita income of the recipients and those of the ethnic groups are shown to be important determinants of the solution of the political equilibrium. We also examine the effects of changes in the degree of corruption, aid fatigue, and ethnic composition, in the donor country on the allocation of aid.
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Volume (Year): 110 (2000)
Issue (Month): 462 (March)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-85, December.
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- Lahiri, Sajal & Raimondos-Moller, Pascalis, 1997.
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- Sajal Lahiri & Pascalis Raimondos, . "Competition for Aid and Trade Policy," EPRU Working Paper Series 94-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Lahiri, Sajal & Raimondos-Moller, Paschalis, 1994. "Competition for Aid and Trade Policy," Economics Discussion Papers 10030, University of Essex, Department of Economics.
- Alberto Alesina & David Dollar, 1998.
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6612, National Bureau of Economic Research, Inc.
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