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Can Repressive Regimes Be Moderated through Foreign Aid?

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  • Palda, Filip

Abstract

In what circumstances should foreign aid be given to less developed countries with repressive rulers? Repressive rulers are assumed to control the national income and to trade it against the probability of staying in office which is assumed in turn to depend positively on popular wealth and repression. A foreign donor aware of this process of optimization will pursue his international objectives by attaching conditions to his aid that alter the relative price of repression and popular wealth in the calculations of the tyrant. The effectiveness of direct and in-kind aid and the desirability of a 'carrot and stick'aid policy depend on the direct and the interactive effects that popular wealth, repression, and the parameters of economic growth exert on the regime's stability and its level of income. Copyright 1993 by Kluwer Academic Publishers

Suggested Citation

  • Palda, Filip, 1993. "Can Repressive Regimes Be Moderated through Foreign Aid?," Public Choice, Springer, vol. 77(3), pages 535-550, November.
  • Handle: RePEc:kap:pubcho:v:77:y:1993:i:3:p:535-50
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    References listed on IDEAS

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    4. Timothy Besley & Andrea Prat, 2006. "Handcuffs for the Grabbing Hand? Media Capture and Government Accountability," American Economic Review, American Economic Association, vol. 96(3), pages 720-736, June.
    5. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-1150, September.
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    7. Tim Groseclose & Jeffrey Milyo, 2005. "A Measure of Media Bias," The Quarterly Journal of Economics, Oxford University Press, vol. 120(4), pages 1191-1237.
    8. Ascensión Andina, 2004. "Asymmetric Information And Electoral Campaigns: The Monitoring Role Of Media," Working Papers. Serie AD 2004-32, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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    Cited by:

    1. Filip Palda, 2001. "The Economics of Election Campaign Spending Limits," Public Economics 0111011, EconWPA.

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