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With a Little Help from My Friends: Global Electioneering and World Bank Lending

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Abstract

This paper uses monthly World Bank project-level data to assess the impact of upcoming elections in recipient countries on loan activity. We analyze the extent to which geopolitics influence both the timing and size of loan commitments and disbursements. While developing countries have better access to new World Bank loans when they vote with the U.S. in the United Nations General Assembly, we do not find that the political cycle plays a role in the timing or size of new loans. For already approved loans, disbursement is faster when countries are aligned with the U.S. in the UN. Furthermore, disbursement accelerates prior to elections if the country is geopolitically aligned with the U.S. but decelerates if the country is not. These disbursement patterns are consistent with global electioneering that serves U.S. foreign policy interests.

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  • Erasmus Kersting & Christopher Kilby, 2014. "With a Little Help from My Friends: Global Electioneering and World Bank Lending," Villanova School of Business Department of Economics and Statistics Working Paper Series 25, Villanova School of Business Department of Economics and Statistics.
  • Handle: RePEc:vil:papers:25
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    Cited by:

    1. Axel Dreher & Katharina Michaelowa, 2008. "The political economy of international organizations," The Review of International Organizations, Springer, pages 331-334.
    2. Kilby, Christopher, 2015. "Assessing the impact of World Bank preparation on project outcomes," Journal of Development Economics, Elsevier, pages 111-123.
    3. Tobias Rommel & Paul Schaudt, 2016. "First Impressions: How Leader Changes Affect Bilateral Aid," CESifo Working Paper Series 6047, CESifo Group Munich.
    4. repec:eee:deveco:v:130:y:2018:i:c:p:1-16 is not listed on IDEAS

    More about this item

    Keywords

    World Bank; Political Business Cycle; Elections;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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