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The (small) blessing of foreign aid: further evidence on aid's impact on democracy

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  • Yener Altunbas
  • John Thornton

Abstract

In an empirical contribution to the literature of foreign aid, we estimate the impact of foreign aid on democracy in a panel of 93 developing economies during 1971-2010. We find that foreign aid promotes democracy, with the result robust to different estimation methodologies and control variables and to instrumenting for foreign aid.

Suggested Citation

  • Yener Altunbas & John Thornton, 2014. "The (small) blessing of foreign aid: further evidence on aid's impact on democracy," Applied Economics, Taylor & Francis Journals, vol. 46(32), pages 3922-3930, November.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3922-3930
    DOI: 10.1080/00036846.2014.946186
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    2. Dijkstra, Geske, 2018. "Aid and good governance: Examining aggregate unintended effects of aid," Evaluation and Program Planning, Elsevier, vol. 68(C), pages 225-232.

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