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Do elites benefit from democracy and foreign aid in developing countries?: Comment

Author

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  • Henrik Hansen
  • Louise Lund Rants
  • Julie Buhl-Wiggers

Abstract

In the study "Do elites benefit from democracy and foreign aid in developing countries" (Journal of Development Economics, 2009) Bjørnskov asks if political elites benefit from foreign aid relative to the rest of the population. He concludes that his results provide qualified support for the hypothesis by indicating that foreign aid is positively associated with elites' share of total income in democratic developing countries, but not particularly so in autocracies. Based on the regressions presented in Bjørnskov's paper, we show that this conclusion is questionable. Foreign aid is not significantly associated with income redistribution in democratic developing countries.

Suggested Citation

  • Henrik Hansen & Louise Lund Rants & Julie Buhl-Wiggers, 2009. "Do elites benefit from democracy and foreign aid in developing countries?: Comment," Discussion Papers 09/06, University of Nottingham, CREDIT.
    • Handle: RePEc:not:notcre:09/06
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    File URL: https://www.nottingham.ac.uk/credit/documents/papers/09-06.pdf
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    References listed on IDEAS

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    1. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    2. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, vol. 64(2), pages 547-570, April.
    3. David Roodman, 2007. "The Anarchy of Numbers: Aid, Development, and Cross-Country Empirics," The World Bank Economic Review, World Bank, vol. 21(2), pages 255-277, May.
    4. William Easterly & Ross Levine & David Roodman, 2004. "Aid, Policies, and Growth: Comment," American Economic Review, American Economic Association, vol. 94(3), pages 774-780, June.
    5. Andrea Brandolini & Anthony B. Atkinson, 2001. "Promise and Pitfalls in the Use of "Secondary" Data-Sets: Income Inequality in OECD Countries As a Case Study," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 771-799, September.
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    Cited by:

    1. Nestor Cheryba, 2020. "Foreign Assistance and Consumption Inequality: Does the Structure of Aid Matter?," Visnyk of the National Bank of Ukraine, National Bank of Ukraine, issue 249, pages 50-70.

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