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

  • Pincin, Jared

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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File URL: http://mpra.ub.uni-muenchen.de/39463/1/MPRA_paper_39463.pdf
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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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  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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  3. Simone Bertoli & Giovanni Andrea Cornia & Francesco Manaresi, 2008. "Aid Effort and Its Determinants: A Comparison of the Italian Performance with other OECD Donors," Working Papers - Economics wp2008_11.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  4. Pallage, Stephane & Robe, Michel A, 2001. "Foreign Aid and the Business Cycle," Review of International Economics, Wiley Blackwell, vol. 9(4), pages 641-72, November.
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  6. 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.
  7. Axel Dreher & Jan-Egbert Sturm, 2006. "Do IMF and World Bank Influence Voting in the UN General Assembly?," KOF Working papers 06-137, KOF Swiss Economic Institute, ETH Zurich.
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  9. 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.
  10. Lucia Tajoli, 1999. "The impact of tied aid on trade flows between donor and recipient countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 8(4), pages 373-388.
  11. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
  12. Berthelemy, Jean-Claude & Tichit, Ariane, 2002. "Bilateral Donors' Aid Allocation Decisions: A Three-dimensional Panel Analysis," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  13. N. Hermes & R. Lensink, 2001. "Changing the Conditions for Development Aid: A New Paradigm?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 1-16.
  14. Murshed, S Mansoob & Sen, Somnath, 1995. "Aid Conditionality and Military Expenditure Reduction in Developing Countries: Models of Asymmetric Information," Economic Journal, Royal Economic Society, vol. 105(429), pages 498-509, March.
  15. Espen Villanger, 2003. "Company influence on foreign aid disbursement: Is conditionality credible when donors have mixed motives?," CMI Working Papers WP 2003:4, CMI (Chr. Michelsen Institute), Bergen, Norway.
  16. Rukmani Gounder, 1999. "Modelling of aid motivation using time series data: The case of Papua New Guinea," Oxford Development Studies, Taylor & Francis Journals, vol. 27(2), pages 233-250.
  17. William Easterly, 2002. "The cartel of good intentions: The problem of bureaucracy in foreign aid," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(4), pages 223-250.
  18. Helen V. Milner & Dustin H. Tingley, 2010. "The Political Economy Of U.S. Foreign Aid: American Legislators And The Domestic Politics Of Aid," Economics and Politics, Wiley Blackwell, vol. 22(2), pages 200-232, 07.
  19. 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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